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Apple pulls China iPhone release

Steven Parker   on 14 January 2008 - 14:35 · 18 comments & 13674 views

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Apple and China Mobile have called off talks to launch the US group's popular iPhone handset to Chinese consumers. Though 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. China Mobile has 350 million subscribers - more than the population of the US.

News source: BBC News

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#1 +chconline on 14 Jan 2008 - 14:37
Does it matter? There's already a ton of iPhone knockoffs in China anyway
(3 replies) #2 GreyWolfSC on 14 Jan 2008 - 14:40
Where are iPhones made? If it's China they're probably already over-producing at the factory and selling them illegally anyway, so it's just Apple missing out on sales now.
#2.1 vipwoody on 14 Jan 2008 - 14:48
nah.... this wont happen. there is always a team from Apple that moderates everything happening in the factories.
#2.2 GreyWolfSC on 14 Jan 2008 - 17:00
Quote - (vipwoody said @ #2.1)
nah.... this wont happen. there is always a team from Apple that moderates everything happening in the factories.

Is this the same team that let out the iPods with a Windows virus on them?

All they have to do is have a factory crank out a million extra of any product and ta-da: instant, authentic counterfeit goods!

Last edited by GreyWolfSC on 14 Jan 2008 - 17:03
#2.3 Ji@nBing on 14 Jan 2008 - 22:08
Quote - (vipwoody said @ #2.1)
nah.... this wont happen. there is always a team from Apple that moderates everything happening in the factories.

Then why is it happening? There are real iPhones for sale in a lot of stores there (was just in Beijing about a month ago). Where are they coming from then? That's a lot of iPhones to be importing.
#3 vipwoody on 14 Jan 2008 - 14:49
bad for apple, lost a couple of billion of dollars from this deal.
(3 replies) #4 Lasker on 14 Jan 2008 - 14:49
I don't think Apple will lose, cause China have 350 millions mobile users, if only 10% of these people use iphone, apple will make a lot of profit and more market share.
#4.1 Neobond on 14 Jan 2008 - 15:03
If you read the article you'd see that Apple are not releasing the iPhone in China at all. So how can 10% of Chinese users have an iPhone and make Apple money?

Last edited by Neobond on 14 Jan 2008 - 15:03
#4.2 jgrodri on 14 Jan 2008 - 15:13
I guess that's why people call it "making a mistake"... it's quite an interesting concept.
Now, to actually make my post useful: even if apple went into the chinese market, I doubt many of those 350 millions could afford the price of the phone plus the high monthly cost. The thing most people don't understand about these seemly big emerging markets is that most of this people don't deal with monthly plans, they are mostly prepaid phones with low, sporadic credit.
It could however be a boom in markets such as HK and other wealthy provinces, if only apple wouldn't try to squeeze every possible cent out of it.
#4.3 Ji@nBing on 14 Jan 2008 - 22:13
Quote - (jgrodri said @ #4.2)
I guess that's why people call it "making a mistake"... it's quite an interesting concept.
Now, to actually make my post useful: even if apple went into the chinese market, I doubt many of those 350 millions could afford the price of the phone plus the high monthly cost. The thing most people don't understand about these seemly big emerging markets is that most of this people don't deal with monthly plans, they are mostly prepaid phones with low, sporadic credit.
It could however be a boom in markets such as HK and other wealthy provinces, if only apple wouldn't try to squeeze every possible cent out of it.

There are lots of very well off people in China, and everyone has a phone. You can't leave the house without seeing lots of N95's in the bigger cities (actually you see a lot of iPhones as well already). If the N95 is doing so well, I'm sure the iPhone would make Apple a lot of money too. They should just release it there without a plan. That's how every other phone is there. They don't lock phones into a plan like they do here. Apple has to accept this. Every market is not like North America where they can force people to pay through the nose with these plans.
#5 bucko on 14 Jan 2008 - 15:38
Be pretty pointless having an Ipone there anyway since you can barley browse the internet, the music and phone functionality would be the only good things.
#6 LTD on 14 Jan 2008 - 16:19
It's a big market, but it might be better to be content with the iPhone released in the rest of Asia.

Which means . . . Chinese black market for iPhones.
#7 vetIdenticalJet on 14 Jan 2008 - 17:05
iPhones are pretty much everywhere if you look in the right places.

I could drive to Toronto to Pmall and buy an iPhone, even though it's not directly from Apple.
#8 n_K on 14 Jan 2008 - 19:41
good, keep this POS out the world
(1 reply) #9 C_Guy on 14 Jan 2008 - 20:16
"the two firms failed to agree on a revenue sharing deal."

That's the politest way of saying "Apple was too greedy to reach a deal" I've ever read.

Note to Apple: Deals like this need to be *mutually* beneficial... not just Steve Jobs-beneficial. And saying that the Chinese market gets the "privilege" of buying an iPhone doesn't count.
#9.1 Ji@nBing on 14 Jan 2008 - 22:17
The service charges in China are already very, very cheap. The mobile companies make money from high volume. If Apple wants a cut of the charges, then the companies will have little to no profits from it. So why would China Mobile bother? Apple should just release it there without a plan and make profits from high volume hardware sales.
#10 sweetsam on 14 Jan 2008 - 22:20
Glad to see somebody decided to stand up.
#11 MulletRobZ on 15 Jan 2008 - 02:26
Well this proves the fact that sooner or later, Apple will be forced to give in and start selling their iPhones unlocked. Otherwise, they will not reach the 10 million sales mark as they wildly predict they will. Doesn't Apple get it that this is a firmly established market and that newcomers cannot simply barge in and dictate new rules to the carriers?

Last edited by MulletRobZ on 15 Jan 2008 - 02:38

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