How important is China to Apple? The company just invested $1 billion in Didi Chuxing, Uber's main rival in China, in part to better understand the country's 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," Apple CEO Tim Cook told Reuters. "Of course, we believe it will deliver a strong return for our invested capital over time as well."
Though Uber has tried to compete, Didi Chuxing, formerly known as Didi Kuaidi, dominates the ride-sharing industry in China. Worth around $25 billion, the company owns roughly 80 percent of the market in China. And it has partnered with Uber rival Lyft in the US, letting Chinese riders hail a Lyft car using the Didi app.
\Meanwhile, Apple, which last year made a profit of $53 billion, is trying to bolster its position in the country, currently the world's biggest smartphone market.
"China is one of the most important markets in the world for Apple," Drexel Hamilton analyst Brian White said. The new partnership "represents an attractive investment, enhances the Apple ecosystem, opens up new opportunities for Apple Pay, offers the opportunities to learn more about the Chinese consumer, shows support for the country and provides Apple with a potential customer in the future for an 'Apple Car.'"
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