Apple has invested $1 Billion in the Chinese ride-hailing service Didi Chuxing. Apple CEO Tim Cook says the investment 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," Tim Cook said. "Of course, we believe it will deliver a strong return for our invested capital over time as well."
The move comes at a time where Apple is hoping to rejuvenate sales in China, where the company has recently ran into some regulatory hurdles. The investment will certainly fuel rumors of Apple entering the automobile industry.
Didi Chuxing, formerly known as Didi Kuaidi, completes more than 11 million rides a day and dominates the Chinese ride-sharing market with more than 87% market share. Apple's funding is the single largest investment Didi Chuxing has ever received.
Cook said that despite this investment, Apple remains focused on the in-car experience with CarPlay.
“That is what we do today in the car business, so we will have to see what the future holds," Cook said. The deal "reflects our excitement about their growing business ... and also our continued confidence in the long term in China’s economy."
Read More
"We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market," Tim Cook said. "Of course, we believe it will deliver a strong return for our invested capital over time as well."
The move comes at a time where Apple is hoping to rejuvenate sales in China, where the company has recently ran into some regulatory hurdles. The investment will certainly fuel rumors of Apple entering the automobile industry.
Didi Chuxing, formerly known as Didi Kuaidi, completes more than 11 million rides a day and dominates the Chinese ride-sharing market with more than 87% market share. Apple's funding is the single largest investment Didi Chuxing has ever received.
Cook said that despite this investment, Apple remains focused on the in-car experience with CarPlay.
“That is what we do today in the car business, so we will have to see what the future holds," Cook said. The deal "reflects our excitement about their growing business ... and also our continued confidence in the long term in China’s economy."
Read More