Southern Daily has cited an unnamed source who says that China Mobile's negotiation with Apple on introducing iPhone to China has failed.

China Mobile's CEO Wang Jianzhou had previously said that Apple's iPhone business model does not suit China, but according to the source, the real reason for the end of negotiations was that the two sides could not reach an agreement on revenue split.

However, Bloomberg reports that China Mobile is still in negotiations with Apple.

iPhone is now being sold in the U.S., Britain, Germany and France. AT&T CEO Randall Stephenson disclosed that Apple will launch a 3G version of iPhone in 2008.