In the second meeting, Apple offered to sell iPhones to the carrier at $600 per unit with the condition that China Mobile sell the device to end users subsidized with their data plans. This offer also was turned down by China Mobiles.
The last and the most recent negotiation broke down because China Mobiles insisted that the carrier be given the proprietary rights to sell iPhone applications to iPhone users in China. China Mobile asked for administering App Store in China. As a justification of the demand, China Mobile cited that payment mode in China is different from other countries. Sources in China Mobile said that customers in China prefer to make payments from their Mobile account deposits and not through credit cards.
In view of the latest development, it is not known yet whether the two companies are going forward with further negotiations. The launch of the iPhone in China has been further delayed.
