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Apple Invests $1 Billion in Chinese Ride-Sharing Company Didi Chuxing

Apple has invested $1 billion in Chinese ride-hailing company and Uber competitor Didi Chuxing, reports Reuters. The move is a strategic investment that will help the Cupertino company better understand the Chinese market, CEO Tim Cook told Reuters.

Didi-Chuxing
"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."
Didi Chuxing, which has raised several billion dollars in funding, says the investment from Apple is the largest it's ever received. Didi Chuxing dominates the ride-sharing market in China, completing more than 11 million rides a day and owning 87 percent of the market in the country.

Although Apple has hired many employees in recent months with automotive backgrounds, likely for its secretive Apple Car project codenamed Project Titan, Cook insists Apple is currently focused on the in-car experience. However, he did not deny what the future may have in store for a potential Apple Car. "That is what we do today in the car business," he told Reuters. "So we will have to see what the future holds."

Cook also used the deal to underline Apple's confidence in the market, saying that it reflects the company's "continued confidence in the long term in China's economy." Apple's sales fell 26 percent in Greater China in the second quarter of 2016, causing Carl Icahn to sell his full stake in the company. Apple was also recently forced to take down its iTunes Movies and iBooks stores in the country. Cook will visit China and meet with government officials this month.

Related Roundup: Apple Car
Tags: China, Didi Chuxing


Top Rated Comments

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13 months ago
Is this essentially a bribe to Chinese regulators? That is, look, we're invested in Chinese companies, let us play in this market?
Rating: 33 Votes
13 months ago
Why doesn't Apple invest in American companies?
Rating: 22 Votes
13 months ago
how is investing money in a company helps you understand Chinese Market (a company they have no controlling ability in)?? it's like me saying I saw Brazil soccer match and it helps me understand Brazilian politics better.

Whatever you are smoking Cook, stop it
Rating: 22 Votes
13 months ago
It makes sense from a financial standpoint, once self driving cars take off these companies will explode.
Rating: 17 Votes
13 months ago

how is investing money in a company helps you understand Chinese Market (a company they have no controlling ability in)?? it's like me saying I saw Brazil soccer match and it helps me understand Brazilian politics better.

I don't think this analogy works.
Rating: 15 Votes
13 months ago


Article Link: Apple Invests $1 Billion in Chinese Ride-Sharing Company Didi Chuxing ('//www.macrumors.com/2016/05/12/apple-invests-1billion-didi-chuxing/')

Didi Chuxing! Sounds like a cash register ringing up the sales.

ChuXING!

Good one, Tim.
Rating: 14 Votes
13 months ago

Yeah! Let's just flush away one billion into a random Chinese company...


it's funny if Apple invested this kind of money on Uber it would probably receive a different reaction.

Yet, Didi which serves more than *5 times* the rides as Uber (global) daily and has 14 million drivers (Uber has less than 400k drivers), gets labelled as a "random" Chinese company... and Apple investment in Didi is labeled as "flushed" away.

Just because the company is not from the US/Europe or seems foreign or we haven't heard of them before doesn't mean it's random or trivial.

.
Rating: 13 Votes
13 months ago
This is an example of why Apple's here to stay for the long haul. Even when they jump in bed with Communist China, buying the country's acceptance, Apple devotees cheer them on.

Few if any Millennials care, or even know what communism is.

Unable to comprehend, too complacent to educate themselves, too deep in a life of entitlements, they'll never know the difference until it's too late. If they're ever hit by the slap of reality, it's going to be the biggest wake up call of their lives.
Rating: 13 Votes
13 months ago


Apple has invested $1 billion in Chinese ride-hailing company and Uber competitor Didi Chuxing, reports ('http://www.cnbc.com/2016/05/12/reuters-america-apple-invests-1-bln-in-chinese-ride-hailing-service-didi-chuxing.html') Reuters. The move is a strategic investment that will help the Cupertino company better understand the Chinese market


Sounds like a bribe to me.
Rating: 12 Votes
13 months ago
The idea of Apple entering the automotive industry is unfathomably stupid. It's as if Nissan decided to build a smartphone. It's just dumb.

The automotive industry is an entirely different ballgame from the tech industry. Apple is gonna learn that the hard way it seems.

Apple really is just a rudderless ship now, they essentially just do whatever sounds good to the cloned MBA's in a boardroom. Buying up Beats, Apple Music, selling 16GB iPhones in the year 2016....they really are shooting themselves in the foot.

No wonder AAPL has taken such a dive, I'm surprised they lasted as long as it did
Rating: 10 Votes

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