Apple has revealed that it has invested $1 billion in China’s Didi Chuxing, which is an Uber rival in China.
The news of the $1 billion investment was reported by Reuters and Apple CEO Tim Cook has revealed that it will help the company better understand the Chinese market.
We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” he said. “Of course, we believe it will deliver a strong return for our invested capital over time as well.”
Apple sees China as a market with major potential for growth and this new investment could help them improve their sales in China by better understanding the market in China.
We heard recently that Apple’s iPhone sales in China were only 13% of the overall smartphone market in China in the first quarter of 2016, so the company has a lot of room to grow in China if it can convince Chinese consumers to buy its iPhones over smartphones from Chinese companies.
Source ReutersFiled Under: Apple, Top News