Apple capitulating on revenue sharing to get iPhone into China

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Bad news for Apple. Although a deal with China Mobile to get the iPhone available to the biggest untapped mobile market in the world will be nice, their margins are going to be as thin as the skin on their teeth. China Mobile spokesperson Rainie Lei:

“Apple is no longer insisting on a revenue-sharing policy, so the biggest hurdle for China Mobile to bring in the iPhone has been cleared”

Uh-ohs! Without a few bucks a month from the subscriptions, Apple is going to be hurting for profits over there. It’s going to suck up their production and they’re going to get very little in return — aside from the considerable fact that they’ll be a major brand in China. It’s a risky venture, but when the alternative is another phonemaker getting the contract, it may be the lesser of two evils.

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