China Mobile Ends Talks With Apple to Sell IPhone
China Mobile Ltd. said it ended talks to sell Apple Inc.’s IPhone in China, stalling Chief Executive Officer Steve Jobs’s plans to introduce the handset in the biggest market by users. Rainie Lei, a Hong Kong-based spokeswoman for China Mobile, said she is unaware of any plans for further talks with Apple. She wouldn’t say why the discussions stopped. Jill Tan, a Hong Kong- based spokeswoman for Apple, declined to comment.
The negotiations ended because Apple wanted more revenue from game, music and video downloads than China Mobile would offer, the Sina.com Web site said today. Apple shares rose the most in more than a year in November after China Mobile Chairman Wang Jianzhou said the companies were in talks to sell the iPhone. “It’s bad news for Apple,” said Johnny Yeh, an analyst at Quam Ltd. in Hong Kong, who rates China Mobile’s shares “buy.” “China Mobile would have helped immediately sell lots of iPhones because they have such a large user base; Apple entering China without China Mobile won’t be as substantial.”
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