China Mobile Eyes iPhone Deal

Tuesday, November 13, 2007 9:10
Posted in category Uncategorized

According to a premarket release on The Street, Apple is reportedly in talks with China Mobile to bring the iPhone to China (a lot of people already have one).

First, as an investor in Apple all I can say is BUY BUY BUY.  give one to your friends, collegues, and don’t forget your boss!

Next, I am actually quite surprised China was behind the E.U. in the cycle.  Now, for my E.U. readers, I apologize but for me China just makes more sense.  First, they are being produced here (see  iPhone: Made In Shenzhen, Assembled by Foxconn), and their partner Foxconn (see Foxconn: Behind the Scenes) is fully capable of producing for the China market.  Second, China is a MUCH larger market than any of the E.U. markets on their own.

Sure, I have no doubt that negotiating this deal has been interesting to say the least, and I am being a bit selffish by saying they should have released here first… but all that being said, Apple has a “bright future” in China once China Mobile gets the servers in place.

oh.. one tip for the Folks at Apple.  my my friend’s iPhone can read Chinese, but I cannot write. I understand this is a “simple” thing to correct, but if you want to hit the mass market, I highly suggest you fix that.

oh #2… the abilty to write a Chinese character on the screen and have it be recognized would also improve the overall functionality for the Chinese users as well (and for us foreigners using electronic dictionaries).

For those that don’t believe… you have no idea how many iPhones are already here!

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7 Responses to “China Mobile Eyes iPhone Deal”

  1. China and I says:

    November 13th, 2007 at 5:57 pm


    Have you think Intellectual Property may be one reason why Apple doesn’t launch the IPhone in China?

  2. Rich says:

    November 13th, 2007 at 6:23 pm

    C & I,

    No. If IP were an issue, then I think they would have found another place to assemble.

    What I thin the issue is/ was is in the fee arrangement. AT&T clearly gave the best proposal over 3-4 others, but in China it is just tiny little Unicom against Mobile… and I am sure that was reflected in the CM proposal.


  3. China and I says:

    November 14th, 2007 at 2:21 am

    To assemble in one or two factories is a small issue but when you market your product around China is another one.

  4. Rich says:

    November 14th, 2007 at 2:25 am

    sure. I think that the main focus was the carrier agreements. Although, in thinking about it more, I would also say that creating a Chinese platform for the phone was probably also another big hurdle.

  5. China and I says:

    November 14th, 2007 at 2:39 am

    Seems for me Apple in China isn’t as trendy as in other places of the world. Chinese consumers do not have an Apple culture. The first echos I also got for the launch of IPhone in Europe, it wasn’t as gigantic as in the US. Nothing like Star Wars or Harry Potter if you know what I mean.

  6. Rich says:

    November 14th, 2007 at 5:08 am

    C & I

    I would agree, however I think that Apple has a chance in China to do very well with the iPhone.

    1) it is affordable (think about iPod and smartphone) for 3000RMB
    2) Once open to third party developers, it will be highly customizable – lots of sounds.. great resolution..

    I heard UK was going well. What do you think is holding them back in other countries? will a 30GB flash drive help?

  7. Rich says:

    November 14th, 2007 at 7:32 am

    Well. apparently we shouldn’t expect it so soon after all!

    China unlikely to see Apple’s iPhone soon: execs where they quote the CEO of China mobile as saying:

    “You have to realize Chinese SIM cards are not locked up, as the iPhones’ are,” the executive said on condition of anonymity.

    “Secondly, our business model does not entail sharing revenue with terminal producers — we don’t share revenue. That’s a Chinese rule,” said the executive. “All it is right now, on the iPhone and Apple, is that the firm welcomes their approach.”

    to be honest, I am a bit confused by the first comment. I don’t understand the locking issue and how a Chinese SIM are a problem (I.. I mean my friend.. fixed that), and I know plenty of Americans and Europeans who are using their phones here with Chinese SIM just fine…. I suspect it is the second one that is the deal breaker.

    fortunately, china Unicom has apparently come out and said they are considering sale of iPhone in China

    “It seems that iPhone is hot in some markets. We are willing to discuss with Apple,” Li Zhengmao, executive director and vice president of China Unicom told Dow Jones Newswires

    Now I know that means nothing until the money is in the bank…. but perhaps they are willing to look past the revenue sharing issue and come to an agreement like AT&T did?