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Apple's Negotiations With China Mobile End

Monday, January 14th, 2008 at 11:00 AM - by

China Mobile and Apple have ended talks over bringing the iPhone to the country, according to an Associated Press article. Apple declined comment, while a spokeswoman for the Chinese company stated: "We can only say that negotiations have ended for now. We have no other news to report.”

The AP story cited a news report at a Chinese Internet portal that said revenue-sharing terms were the cause of the disagreement. China Mobile supposedly refused to accept the 20 to 30 percent of user fees that Apple wanted.

The breakdown could give an advantage of China Mobile rival China Unicom, which could score an exclusive deal, according to BNP Paribas analyst Eric Wen. He believes China Unicom may be more willing to negotiate the kind of user fee cut Apple wants.

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