high-margin device Archives


Why the iPhone won’t be in Asia

Posted on January 21, 2008  /  1 Comments

Robert Clark says: Apple and China Mobile recently broke off talks over selling the device in the mainland after the Chinese carrier rejected Apple’s insistence on a 30% commission. An executive at a non-mainland operator said the company was keen on selling the iPhone, but just couldn’t raise Apple’s interest. Apple doesn’t have a senior executive in Asia trying to push the device and is conducting negotiations from Cupertino at a leisurely pace.   It’s worth remembering developing countries have never been happy hunting grounds for Apple’s high-end devices. The iPhone is a low-volume, high-margin device demanding a fat airtime commission.