Money Matters - Simplified

China Mobile Still Negotiating Terms with Apple

China Mobile Ltd (CHL)—the world’s largest mobile phone service provider--is still negotiating terms with Apple Inc. (AAPL) over selling the iPhone device in China.

China Mobile’s rival China Unicom has already become the first operator to sell the iPhone handset in China last month, claiming to have more than 5,000 iPhone users.

China Mobile’s rival China Unicom has already become the first operator to sell the iPhone handset in China last month, claiming to have more than 5,000 iPhone users.

The Chairman and CEO of China Mobile, Wang Jianzhou, said at the GSM Association's Mobile Asia Congress in Hong Kong on Wednesday, "I think the iPhone is a very good phone for consumers and is very popular with young customers so China Mobile has continued negotiations with Apple to introduce the iPhone on China Mobile's network."

iPhone not the only device for sale by China Mobile
Jianzhou has also hinted in a mobile conference held in Hong Kong on Wednesday that iPhone is not the only device offered by the company for Chinese market, and that it plans to introduce different types of smartphones in coming years in the market.

He added, “But (iphone) is just one model, we would like to make the (handset) market more diversified and encourage all handset vendors to sell more models."

Delay in negotiations
What’s confusing is that Apple and China Mobile are taking too much time over the negotiations.

Jianzhou did not comment on why no agreement has been reached yet by the two companies, but sounded positive that something will come out of the ongoing talks soon.

"We really are still in talks with Apple...In our negotiations in the past, we insisted on sticking to our conditions," Jianzhou told reporters at the conference. “We are still very sincere about completing this negotiation."

In the past, China Mobile’s CEO has publicly made a complaint regarding the model of revenue-sharing with Apple’s Iphone, and has reportedly opened its own mobile app store—the Mobile Market.

China Mobile first revealed its talks with Apple over iPhone two years ago. But nothing has come out of talks yet, which only seems to be stretching and going nowhere; at least there are no signs of a resolution at present.