China Mobile Drops iPhone

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China Mobile announced today that it is no longer negotiating with Apple to provide the world’s most populous nation with the popular iPhone. This opens the door for China’s number two mobile service provider, China Unicom, to talk with Apple.

“We can only say that negotiations have ended for now. We have no other news to report,” said Li Honghui, a spokeswoman for China Mobile Communications Corp., the parent of cell phone carrier China Mobile. She declined to comment further.

Rainie Lei, a spokeswoman for China Mobile, earlier Monday also declined to say why the talks ended.

“We have held talks with Apple to launch the iPhone device in China. However, those talks have ended,” she said

According to Dow Jones Newswires, an unnamed official at China Mobile said that China Mobile and Apple could not agree on revenue-sharing terms in preliminary discussions. The unnamed source said China Mobile was unwilling to pay between 20 and 30 percent of future user fees from the iPhone to Apple for the right to carry the device.

The break-down in talks leaves the door open for Apple to talk with China’s second largest mobile phone carrier, China Unicom. When the news broke last year that China Mobile was talking to Apple, China Unicom said it was interested in the iPhone but that the two companies hadn’t had any formal negotiations.

Eric Wen, an analyst at BNP Paribas, doesn’t think China Mobile will be hurt by not carrying the iPhone. Its market share in China is too large to have immediate repercussions. But Wen does think that China Unicom may jump at the opportunity to carry the iPhone and pay the large percentage of user fees back to Apple.

  • http://lol Microsoft

    MS Office: Profitable. Google Cloud: Laughable/

    • Andrew Chalkley

      Profitable because of offline businesses who of which are a dying breed.

      Google apps is a total end to end solution in the cloud. Office comes with the headaches/cost of IT departments.

      • RealitySpeak

        get real pal. google apps is a pathetic business. good thing they have TechCrunch to write up their PR.

      • Andrew Chalkley

        You’re a Microsoft Certified network administrator ain’t ya, admit it.

  • http://lol Microsoft

    oh wow 30k, meanwhile ms office is used by 100 million others

    • xxdesmus

      sorry Leena, but 30K is a drop in the bucket compared to the number of MS Office users. In other news, these 30K users will still have MS Office installed on their machines for the times when Google Apps go down.

      • Joolwe

        Eventually google will make everything in their app suite support offline mode.

    • Andrew Chalkley

      50 million are cracked.

      • Edward

        hah, ya probably

  • licarian

    Wow are you on the Google payroll?

    • Andrew Chalkley

      You’re mom is.

      • Ryan Cammer

        YOUR, andrew. YOUR. NOT You’re.

        that said, the m$ tools are out in full force this week, aren’t they?

      • Andrew Chalkley

        Your right :)

  • NeoTechie

    It looks like we already have a winner.

  • elvirs

    hope this pushes MS to build its office more into the cloud. but hey, did gmail force MS make hotmail better? -No, hotmail is simply dying, i try not to be skeptic but office may die soon too.

    • Andrew Chalkley

      All but the Xbox is dead when it comes to MS

  • Dustin A Coates

    MS Office: 0? Are we sure about that?

    • Andrew Chalkley


  • David Haddad

    That’s 1.5 million US$/ year – a lot of money.

  • Clu

    So they are uninstalling MS Office on all of thier machines? Yeah, I though not.

    • Andrew Chalkley

      Yeah because they are switching to Ubuntu.

  • RR

    Scoreboard malfunction?

    I’m the last person you’ll find using Microsoft products, but this headline is just ridiculous.

    • Andrew Chalkley

      You’re a die hard MS fan wow.

  • jenkins

    Despite what MS fanboys might say Google is making real progress with APPS. A bad economy will only help even more.

  • Brian

    I actually thought this was a good, short, informative article. Leena didn’t say this means that Google is killing Microsoft. In fact, she clearly states otherwise.

    “Google Apps is not directly competitive to MS Office (Google Apps is cloud based)”

    What this short article did tell me is that Google Apps as a whole is becoming more viable and a real choice for larger companies. That in turn tells me there is still great potential for market growth.

    • Andrew Chalkley

      Google will kill Microsoft. Twitter will kill Google. BBC will kill Twitter. BBC will implode.

      • Anatoly

        You mean, Implosion will kill BBC. :)

  • Nathan

    Doesn’t Microsoft’s Live@edu have about 3.5 million users in it’s program?

    that would be, exchange/hotmail, online storage, office live, messenger, etc.

    your scoreboard seems uninformed.

    • Andrew Chalkley

      So does your cat.

      • Nathan

        can we block this trolling spammer?

      • Andrew Chalkley

        When has an awesome sense of humour ever been interpreted as troll-like spamming behaviour?

        Calling me a trolling spammer is like me calling you a censoring bully!

  • ryan scott

    Who cares how many users Office has? Makes no difference to me – when I set up my company I deliberately didn’t use MS products and put everything in the cloud on google (and other, but mostly google) products.

    Downtime experienced with google – none. Downtime I had experienced with Office – tons, but compared to none, even a few minutes is too much. And honestly what Office problem is ever fixed in a few minutes?

    • Andrew Chalkley


    • JimBob

      I did exactly the same thing when I started my company, based on my horrid experiences with MS Office. In fact, we lead a Microsoft-free existence and have no downtime and don’t need an IT department. If that’s not progress what is?

  • Brutus

    Now while I don’t understand the whole Microsoft 0 Google 1 thing. I imagine it’s because Microsoft has yet to get cloud computing right as of yet. I see this as a huge milestone for Google though. Cloud computing is going to change many times over the next 10 years, but I see it being a big component of enterprises due to cost savings. MS Office = $240/seat. Google Office =$50/seat. Microsoft would have to drop prices to compete. That everyone could benefit from.

    • Andrew Chalkley


    • Ed

      Brutus, MS already did dropped prices.

      In order to compare apple to apples:
      MS Business Productivity Online Suite = $180/user/year vs Google Apps = $50/seat/year

      • Curtis

        MS Business Productivity Online Suite = B.P.O.S….Big – Piece – Of – S*&T. BPOS is a weak attempt to compete with Google Apps. Take a look at it, you’ll be disappointed.

  • yofrez

    What many of you Goggle naysayers fail to realize is that MS will likely lose hold of its monopoly over Office . I’m not saying its going to happen tomorrow, but I’m confident Office will not be as big as it is now in 10 years. Cost focused organizations like mine are frustrated with Office and we will likely make the switch within the year.

    • Leo

      Office is already losing its monopoly – we won’t have to wait 10 yrs to see it. A large number of people have left Office bec of its bloat and viruses, for Linux, Mac, OpenOffice, smaller and leaner word processors and other apps … and Google’s apps.

      Google (and other online apps) are clearly the office software of the next decade, and Microsoft has yet to really adapt, which is why it is already losing.

  • Links vom 13.05.2009

    […] Google erhält Auftrag über 30.000 Apps Benutzer aus einem Unternehmen […]

  • Igor

    “chock full of innovative features including offline access, chat, search, mobile access”

    Not a single one of these were innovative features when they appeared on Gmail.

    • Leo

      It’s the way they were implemented that was innovative. Search in Gmail was better and faster than any other email program. Chat was easier and faster. Offline access meant you could use the best email program (Gmail) from any computer, without syncing, but still be able to use it when not connected to the internet.

  • New Gadgets | Google Adds 30,000 App Users In Biggest Enterprise Deal Yet

    […] Original post by TechCrunchIT […]

  • Edward

    Yup, things change. If Google keeps innovating like this, good things will and have happen for them. MS better step it up with Live.

  • Bob Saint Clare

    From an enterprise-deal standpoint, 30k users is indeed not a big deal.
    From a consumer cloud-based business moving into the enterprise space standpoint – it’s a very significant move.

  • Chris Cranis

    So interesting to see how many Microsoft defenders there are out there.

    First, Rome wasn’t built in a day. Microsoft launched Office over a decade ago and yes, has accumulated millions of users….based in part on lack of innovation from other software companies. Remember, Lotus? There were barely any competitors and Office became the standard.

    Question for all the MS defenders now….how many of you are on the latest version of Office? Do you upgrade very release and/or pay for support? If your answer to the first part (version) is less than Office 2008 (or whatever it’s called), than you should not be allowed to talk…..instead, go out and spend $600 on the new version and buy a support plan.

    Google Apps was released to businesses like a year ago and they already bagged a 20k deployment at Genentech and now 30k at Valeo? If you are MS, shake…just a little bit. Even though they only have 2 multi-thousand deployments (worth talking about), they are signing a million people a month.

    Clu writes, >> So they are uninstalling MS Office on all of thier machines? Yeah, I though not.

    You are right. They probably wont uninstall Office, but I can promise you that IT is working on future laptop images that do not include Office, nor will Valeo ever renew their site license with MS. Its not about removing old, obsolete software, its the fact that Valeo will NO LONGER be an Office customer. 30k users….thats a bit of revenue that MS counts on to keep their shareholders happy.

    Secondly, how history repeats itself….Remember Siebel? Go ask them how much time and effort they put towards competing against back in ’99 and ’00. Do you think they were as nervous as MS may be at the market share of Google Apps? Probably not and look what happened.

    When cloud services start nipping at the heals of large enterprise software companies and start gaining the trust and confidence of company’s CIOs (Merrill Lynch, Cisco, Dell, Starbucks, etc) the industry starts to shift. I think we all know where software is heading (can you hear the toilet flush).

    Last point from me – Apple continues to innovate with their mobile phones, music devices and computers (and OSs). There is a reason that millions of people are swapping to Mac vs. Windows. Its cleaner, easier, faster and there is less dependency on software. When all you need is a browser and the web….MS doesnt look so good.

    There is a reason the MS phones and music players are dead.

    (OH yeah, and lets not forget that MS is moving to the cloud themselves…..)

  • kevinkris

    How many paid users to google apps are there?
    I mean how many 50$ per year they are getting??

  • A S


    Does anyone know how secure Gmail service is? I have been sending emails back and forth; and collecting data and storing it in google docs for my new startup. Apparently, all the information from Google docs and Gmail came out, and got leaked.

    I have been checking safety of my account, it was never accessed from any other location – IP address; other than mine; nor is my PC hacked.

    Can anyone help me? Or give more safer alternatives?


  • Sam Johnston

    This deal was all but won back in 2007. I know because I moved to France to design, deliver and demonstrate the proof of concept as a strategic consultant before handing it over to CapGemini for the deployment.

    Back then it was really big news… just a pity it took 2-3 years to work its way through to the public eye.


  • steve mobs

    MS Office is the standard. The switching cost of changing is so high for the majority of large corporations.

    Google Apps can make a lot of money serving a niche. Namely smaller businesses who’s needs are not as complex.

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