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Rumor: China Mobile May Subsidize iPhone 3G

Friday, August 29th, 2008 at 4:45 PM - by

China Mobile and Apple have agreed to rely on handset subsidies, according to a source close to China Mobile.

The agreement, described by Pacific Epoch, is designed to avoid passing the high price of an unsubsidized iPhone on to Chinese customers, the sourse said.

The Pacific Epoch said that the decision was intended to resolve the differences the two companies had previously on a revenue sharing model. That discussion broke down and led to a delay in the iPhone 3G launch there.

Previously, iPO reported that China Mobile's chairman Wang Jianzhou was reluctant to enter into that revenue sharing agreement, and both companies have kept the state of negotiations very secret.

If a deal is finally reached, Apple stands to gain considerable ground in the vast Chinese market place. To date, the iPhone 3G has been available only in Hong Kong and Maccau.

Recent reports have revealled that Apple expects to ship over 40 million iPhone 3Gs in 2009.

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