For many operators, being in talks with Apple over distributing the iPhone is something to be tentatively crowed about and jealously protected; not if you're Wang Jianzhou, CEO of China Mobile, however. In a statement today he confirmed that the network - the world's largest mobile operator - is negotiating with Steve Jobs & Co regarding exclusivity for the iPhone in China, while simultaneously unleashing a public critique of Apple's current cellphone business model. Jianzhou likes the iPhone, oh yes, but he doesn't like Apple's demands on his monthly revenue.

In the US, for instance, analysts have guesstimated that AT&T pays Apple $18 per month, per iPhone, for the duration of the user's contract; that's $432 on top of the ticket price of the handset itself. Wang Jianzhou, though, sees the power still firmly resting in the operator's court, and is reluctant to countenance Apple taking a cut of his 350 million subscribers:
"We still think we can maintain the operator-centric model because we have the customers, the end users" Wang Jianzhou, CEO, China Mobile
Ahead of Apple's plans to bring the iPhone to Asia in 2008, this could be a significant stumbling block if China Mobile's competitors are willing to show solidarity and stand their ground, rather than cave to Cupertino's demands in order to steal the contract for themselves. We're regularly reminded of the scale of China as an "emerging market", and it could be that Apple has to make concessions in order to stake their claim there.







