Apple pulls China iPhone release

By BBC News
January 14, 2008

Apple and China Mobile have called off talks to launch the US group's popular iPhone handset to Chinese consumers.

While no explanation was given in China Mobile's statement, there is speculation that the two firms failed to agree on a revenue sharing deal.

The news means the iPhone is unlikely to be released in China anytime soon.

China Unicom, the country's only other mobile network, said last year that while it had no plans to introduce the iPhone it remained open to the idea.

Double average salaries

Mobile phone analysts have long said Apple would struggle to introduce the iPhone in China.

In addition to difficulty in gaining agreement over a revenue sharing deal, they have pointed to technical and content issues.

The iPhone sells for about $500 (£255) in the US, double the average monthly salary in China.

Though out of reach for the great majority of Chinese, it would likely prove very popular among the growing middle classes of Beijing, Shanghai and the other big eastern cities.

The iPhone was launched in North America and Europe last year, where Apple chose a single network provider in each country.

It is now continuing with talks to launch the handset in Japan.