Report: Talks bringing iPhone to China fail

Talks between China Mobile and Apple to bring the iPhone to that country have failed, according to a report from the Southern Daily newspaper, citing unnamed sources.

China Mobile’s CEO is reported as saying the “iPhone model is not suitable for China,” but sources claim the real reason talks have not gone well to this point is because of differences the companies have over revenue sharing.

However, Bloomberg is reporting that China Mobile is still in talks with Apple, denying that talks between the two companies have ended.

Launched in June, Apple sold just under 1.2 million iPhones in its fiscal fourth quarter. Since then the company has launched the iPhone in the U.K., Germany and France.

AT&T CEO Randall Stephenson said on Thursday that Apple plans to release a 3G iPhone in 2008.

Update: added information from Bloomberg that China Mobile denied talks have ended. 8:39 am 11/30/07

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