MacDailyNews has reported that the talks between Apple and China Mobile have not been going well. It would seem obvious that revenue sharing is at the heart of the problem and we can only imagine that China Mobile does not want to pay what AT&T is currently paying. Unfortunately for Apple, China Mobile is in an awesome negotiating position: they have 350M customers (or about 70% market share in China), which is probably 8x what any U.S carrier has.
Will Apple back down on its demands? Not for now. In the meantime, Chinese customers can enjoy countless iPhone clones.
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Seen at: reuters 
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