Apple inching closer to Chinese iPhone deal

Mounting evidence suggests Apple is close to finally launching the iPhone in the massive Chinese market. IDG News Service reports a WCDMA-based Apple handset has appeared on the approved product list published on the State Wireless Inspection Center government-managed industry arbiter's website--the device, apparently an iPhone, was cleared last month to use its assigned frequency range for five years, the center notes. China Unicom, which is reportedly negotiating with Apple to sell the iPhone to its subscribers, operates a WCDMA network. In related news, the Apple website is advertising a Beijing-based job posting to supervise "iPhone training" across Asia--the position's duties include designing training for carrier partners that sell the iPhone.

Apple has said it hopes to begin selling the iPhone in China in the next year. Negotiations between the computing giant and China Mobile reportedly broke down after the two firms reached a stalemate over the sale and distribution of mobile applications. Citing a source with the China Mobile Research Institute, Interfax reported in February 2009 that China Mobile and Apple spent about 18 months hashing out an agreement to introduce the iPhone to Chinese consumers--during the first of three rounds of negotiations, Apple demanded between 20 percent and 30 percent of the operator's revenues from iPhone users, a stipulation rejected by China Mobile. After the companies returned to the bargaining table, Apple offered to sell iPhones to China Mobile at $600 per unit while stipulating that the carrier subsidize any iPhone service bundles offered to users--again, talks broke down.

The third and final round of negotiations ended after Apple demanded it retain control over iPhone application sales, insisting consumers purchase apps directly from the App Store. According to the source, China Mobile president Wang Jianzhou viewed Apple's offer as a threat to the operator's mobile web dominance: "Wang said China Mobile should operate the application store itself in order to maintain its advantage," the source said. In addition, China Mobile argued the App Store billing model would prove problematic, contending Chinese consumers prefer to pay for services by depositing money into their mobile accounts instead of funding purchases via credit card. China Mobile is now poised to launch its own application storefront, dubbed Mobile Market, and will reportedly seek a 50 percent cut of all sales.

For more on the Chinese iPhone rumors:
- read this IDG News Service article