After rumors earlier this week that negotiations with China Mobile broke down, Chen Jingsheng, vice president of D.Phone, has told Chinese media that D.Phone has signed a strategic agreement with Apple for the iPhone and iPhone will be first sold at D.Phone's stores after it enters the Chinese market.

Chen says that iPhone will come to China around the Spring Festival holiday of 2008 and will be sold at D.Phone's retail stores. However, Chinese media still reports that China Mobile will be iPhone's premier partner in China though the parties' negotiation reportedly ended due to disputes on a revenue split. Those news reports say it is unlikely that Apple will cooperate with a mobile phone dealer like D.Phone for the iPhone.

Some other analysts quoted by local media say they believe the spreading of the news that Apple has signed with D.Phone for the iPhone might be a strategy that Apple has taken to force China Mobile to make a concession in their negotiations.