Talks between China Mobile and Apple over carrying the iPhone in China have failed, a report claims.

Citing the Chinese-language Southern Daily paper, MarketWatch reports the impasse. The original report cites "unnamed sources".

It's alleged that Apple's proposals to launch the iPhone through China Mobile were based on the same notions of revenue-sharing the company has been able to secure with its existing network partners. The two firms were unable to agree a revenue sharing figure, leading to the breakdown of talks.

Apple is now in talks with other mobile phone distributors in China.