China Mobile and Apple have been trying to come up with an agreement to bring the iPhone to China with three rounds of talks over the last 18 months between Apple CEO Steve Jobs and COO Tim Cook and China Mobile President Wang Jianzhou. The end result of these talks is no iPhone for China
According to an Interfax source in the first round of talks Apple asked for 20-30% of China Mobile's revenues which China Mobile rejected.
In the second round Apple offered to sell iPhone to China Mobile at $600/unit as long as China Mobile agreed to subsidize the phone when selling to its users. China Mobile didn't like that much either.