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Apple the challenge for the business in China

  • Author:Tiffany sheng
  • Source:www.chinatrucksupplier.com
  • Release on :2016-05-23

Apple the challenge for the business in China

 

Didi Chuxing, China’s largest ridehailing company,has made no secret of its admiration for Apple. Thecompany’s official name, Xiao Ju Keji, which means Little Orange Technology, is a reference to the US technology group. Visitors to Didi’s campus in Beijing are told how Cheng Wei, its founder, was looking at the logo on an Apple store and thought,“If I can’t be an apple, I can be an orange”.

 

That admiration seems to be working in both directions : Apple invested $1bn in Didi last week,its biggest minority investment ever.

 

The deal is not a huge outlay for a company that has net cash of $153bn but it is an unusual move given that Apple has previously shied away from using its cash to invest in start-ups.Unlike other big tech companies, such as Google and Intel, which have active venture arms, Applehas a longstanding tradition of incubating new ideas in-house.

 

The Didi investment also points to the growing list of challenges facing Apple in China, a country that has become increasingly important to its growth prospects. It could have wide ramifications for Apple’s efforts to move beyond the iPhone into services, say analysts .

 

For several years, China had been a key source of fresh demand for Apple as iPhone penetration rea-

ched saturation in more developed markets such as the US. But this reversed dramatically in the most

 recent quarter, when sales in greater China dropped 26 per cent,contributing to Apple’s first drop in revenues in more than a decade .

 

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Contact :

Tiffany Sheng (overseas sales manger)
Hubei Chengli Ocean Auto Sales Co.,Ltd
ADD: Capital of Special Purpose Vehicle, Suizhou City, Hubei Province,China. 

Mail : tiffany@chinaoceanauto.com
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Tel: +86-13886865927 / +86-722-3819709
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Skype: tiffany.shen.valley.orchids
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