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China Mobile wants some of Apple's App Store revenue

by Kelly Hodgkins Nov 9th 2011 at 11:00AM

China Mobile has been quick to talk about the iPhone to the media, but its internal talks with Apple are apparently not as fast and furious. According to a report from AllThingsD, China Mobile and Apple are "firmly engaged" in a discussion about the iPhone, but technology concerns and money squabbles are slowing things down.

Unlike most wireless carriers which are falling over themselves to get the iPhone, China Mobile is doing the opposite and supposedly pushing Apple to give it a piece of the App Store revenue. Giving a carrier a cut of this lucrative business is something Apple has never done before and likely doesn't want to do, but China Mobile may believe it's in a good position to make this request.

Everyone, including China Mobile, knows that Apple wants to expand further into the Asian market and China Mobile may be using its large subscriber base to squeeze this extra money out of Apple. China Mobile may also feel it doesn't need the iPhone right now. The wireless carrier confirmed it already has 10 million iPhones on its network and is apparently happy with that number.

Apple may be likewise reluctant to ink a deal as it may need more time to develop the TD-LTE technology that's compatible with the carrier's network. Most likely, Apple and China Mobile will be ready to sign on the dotted line sometime next year when Apple introduces its LTE-based successor to the iPhone 4S.



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China Mobile has been quick to talk about the iPhone to the media, but its internal talks with Apple are apparently not as fast and...
 

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Chinese app sales are a way to small - there is nothing bug to share.
Every developer can clearly see it in his sales reports.
Chinese paid sales are even lower then in Europe.
That was quite an unexpected to me.
However most of free app downloads are from Chinese.

November 09 2011 at 6:36 PM Report abuse rate up rate down Reply
Rob

This is why Apple is going to have to eventually spend some of that cash on a mobile wireless infrastructure of it's own. Whether it's buying out an existing player, investing in some up and comer, or something else. Apple relies on carriers to be "dumb pipes" to delver content to their devices. Carriers don't want that, though, because they're afraid of missing out on revenue opportunties. Once Apple starts giving China Mobile a cut of sales, eveyone else will want in. Right now, no carrier can afford to say no to Apple, but with Android pushing so many units it's only a matter of time before they gain enough "mindshare" to rival the iPhone as a brand.
Maybe Apple should buy, or become a controlling partner in, Lightsquare. They want to be a dumb pipe and supply to carreirs and other users in wholesale agreements. If Apple owned that network, they could barter it for preferred terms on other wireless networks.

November 09 2011 at 12:56 PM Report abuse -1 rate up rate down Reply
2 replies to Rob's comment
El Barto

So true...I think lightsquare should be bought by apple...but if china mobile wants money from apps, they probably won't get much....most software in china is pirated, is a culture thing, Chinese are not used to paying, period. Not being racist or anything is just the way their culture and mind set has been for many years...it will be decades before this changes.

November 09 2011 at 2:58 PM Report abuse rate up rate down Reply
Crzyrio

So you are saying that Apple is going to invest enough money to have global wireless infrastructure?

The iPhone sells in countries other than yours....

November 09 2011 at 5:13 PM Report abuse rate up rate down Reply
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