Discussions between Apple and China Mobile have been called off according to a China Mobile spokeswoman. While no official reason has been provided, it is likely that revenue sharing was one reason the two companies could not come to terms.
Reports of the two companies talking about bringing the Apple iPhone to China first surfaced last November. Even then, many expressed doubt that the discussions would be successful, citing revenue sharing and technological challenges as factors that would prevent agreement between the two companies.
Future discussions have not been ruled out. Apple could also turn to China Unicom, a smaller carrier than China Mobile, that expressed interest in carrying the iPhone.