Around the world, there is no more important wireless carrier than China Mobile. And Apple knows that. The only issue is, it can't get a deal done to bring its iPhone to the carrier's service.
Citing industry sources, Sterne Agee analyst Shaw Wu claims China Mobile is demanding a slice of the revenue Apple generates from the App Store in order to allow the Cupertino, Calif.-based company to bring its iPhone to the carrier's network, All Things Digital, which obtained Wu's investor note, is reporting. As one might expect, Apple has balked at the idea, effectively putting the companies at a deadlock.
Bringing the iPhone to China Mobile has become one of Apple's key mobile strategies. Not only does the company believe Asia is a key growth area for its operation, but with over 628 million wireless subscribers, China Mobile could dramatically improve Apple's financial performance.
That said, Apple has been in discussions with China Mobile for years now to no avail. Dating as far back as 2008, the companies were in talks to bring the iPhone to the service, but China Mobile CEO Wang Jianzhou said at the time that Apple's desire for control was enough to scuttle any deal.Earlier this year, talks resumed between China Mobile and Apple after Jianzhou said that he had met with Apple co-founder Steve Jobs about bringing the iPhone to China Mobile. He said at the time that it was "a common wish of China Mobile and Apple to come to an agreement as soon as possible." So far, however, that hasn't happened.
China Mobile's latest demand comes just a couple months after Jianzhou said that he would gladly bring the iPhone to his wireless network if Apple would produce a 4G TD-LTE-compatible iPhone for its customers.
"China Mobile and Apple hope to find a solution for close collaboration," Jianzhou said in September. "We discussed this issue with Apple. We hope Apple will produce a new iPhone with TD-LTE. We have already got a positive answer from Apple."
Neither China Mobile nor Apple immediately responded to the latest rumors surrounding their ongoing negotiations.
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