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iPhone Talks with China Mobile Collapse

Apple was hoping to bring the iPhone to China but that hope is now at a stall. According to unnamed sources, China’s largest mobile phone company terminated the talks over revenue sharing differences.

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.

There are other conflicting with reports that China Mobile is still in talks with Apple, denying that talks between the two international companies have ended. However, sources say the talks have completely ended at this point:

“Negotiations between Apple Inc. and China’s largest mobile phone company have broken down…” and according to China’s Southern Daily newspaper: “negotiations to launch Cupertino-based Apple’s iPhone through China Mobile Ltd. failed because of differences over revenue sharing.”

The local newspaper also said Apple plans to sell the iPhones directly now by opening stores in Beijing.

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.