China Mobile and Apple are understood to have called off discussions over a potential launch of the iPhone in China.

The pair are known to have been in discussions over a potential launch of the device since November, although no reason was given for the termination of the talks.

Some believe that China Mobile, the world’s largest carrier in terms of subscribers, could not agree with Apple on the controversial revenue share that has been revealed as part of the standard iPhone partner contract.

It has also been suggested that the iPhone is simply too expensive for China, coming in at twice the average monthly salary for the device alone, without factoring in the monthly tariff.

Nevertheless, it’s likely that Apple will reveal a number of new iPhone partners at the annual MacWorld conference, which takes place in San Francisco on Tuesday.

Naturally, we have nothing to go on but rumour, but the banners going up at San Fran’s Moscone Centre, which will host the event, read: “There’s something in the air”. This at least is heavily suggestive of new wireless products to be launched by his Jobsness.

So far the rumour mill has cranked out a 3G version of the iPhone, an Apple notebook with WiMAX, some kind of ultra mobile device like a mini notebook/handset, or a number of products featuring Ultra-wideband (UWB) or wireless USB.