Backstory on iPhone negotiations
As has become more and more evident, the negotiations with China Mobile over a 3G iPhone have come to a standstill. There may still be some hope for a 2G iPhone deal (EDGE iPhone Nano) with China Mobile, but you might have better odds of winning at Three Card Monte than betting on an iPhone deal with China Mobile in 2009. But don’t fret … an official iPhone in China is coming soon! China Unicom and Apple have made considerable progress on a deal. This time there will be no need to fill up cargo containers for a long overseas voyage. China Unicom warehouses are not far from Hon Hai’s city within a city - Foxconn’s Shenzen, China campus. The full story on iPhone negotiations between Apple and China’s carriers can be found > HERE
China Stakes has posted an interesting article on the evolving iPhone negotiations between Apple and both China Mobile and China Unicom. The article contains no major revelations and most of the negotiation trials and tribulations have been well documented here on iPhonAsia. There were, however, several items in this article that might be of interest to regular iPhonAsia readers. For one, the article confirms that Gang Li China Unicom’s Executive Director of Mobile Communications, and Yu Yingtao, head of China Unicom’s handset management center and its procurement subsidiary Vsens.com, were key members of the China Unicom delegation that met with Apple in Cupertino March 8th through the 18th. Much more on these negotiations > HERE
There have been several rumors in the Chinese financial press about a substantial (forthcoming) iPhone pre-purchase for China Unicom’s inventory. The Vsens.com unit run by Yu Yingtao, is the entity most likely to acquire and warehouse new model iPhones. Keep your eye out for a fleet of trucks pulling into China Unicom distribution centers later this summer … no labels on the boxes, but they will be well guarded!
Another item of note in the China Stakes article was the mention of a China Mobile delegation that reportedly met with Apple in Cupertino in the Summer of 2008. China Stakes reports that this negotiating team was led by members of China Mobile’s Data Department, headed by Gao Nianshu. The article goes on to say that China Mobile CEO, Wang Jianzhou was involved in several video conference calls with Steve Jobs and Apple executives. We can toss out a few guesses how these negotiations ended … China Mobile wanted Apple to:
- Support TD-SCDMA (build a TD iPhone 3G)
- Strip out current iPhone services (iTunes, App Store, etc.) in favor of China Mobile’s WVAS
Apple said “no” … more background and analysis > HERE
Probable Apple visit to Beijing in the Spring
There is still a chance that Apple executives will meet with Wang Jianzhou when they fly to Beijing this Spring, however any meeting with China Mobile may be simply a courtesy call. Is it really necessary for Apple to go to China? In a word … Yes! This Apple sojourn would reciprocate China Unicom’s visit and be a show of respect for the delegation that visited Cupertino in March. First and foremost on Apple’s Beijing agenda will be conversations with China Unicom Chairman Chang Xiaobing and his team. Secondary agenda items might include a meeting with Lou
Qinjian, Vice Minister of China’s Ministry of Industry and Information Technology (MIIT) and perhaps even a meeting with the MIIT Director, Li Yizhong. This would not be just a social call. The MIIT holds the final approval over any handset sold officially in China. There is also an outside chance that China’s MIIT will change their policy and approve WiFi on handsets, as long as the phone meets China’s WAPI encryption standards. The full story on WiFi in China can be found > HERE