Didi Chuxing claimed that it is the company’s biggest investment so far
Apple Inc today announced that it has invested US$1 billion into Chinese ride-hailing app Didi Chuxing, giving them a sizeable stake in the company, according to a report by CNBC.
The investment in Uber’s largest competitor in China is meant to help the company “better understand the critical Chinese market,” according to Apple CEO Tim Cook.
“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,” he added.
He also said that he sees opportunities for Apple and Didi Chuxing to collaborate in the future.
In an official statement, Didi Chuxing cited the investment as the “the single largest … it has ever received.”
Sales of Apple products have slumped in China (its second largest market) amid slowing economic growth in the country.
Recently Apple also came under pressure from Chinese regulators when its online book and film services were forced to shut down in April.
Cook stated that despite the challenges, he remains confident in the market.
The deal “reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy,” he said.
Apple has also been looking into improving in-car experiences through its CarPlay system (which links smartphones to vehicle infotainment systems), with several sources citing that the company is looking to build its own self-driving car.
Image Credit: Gratisography
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