Apple expects much of China's market

An Apple store is seen in Los Angeles, California, United States, April 22, 2016. [Photo/Agencies]

Didi Chuxing, the domestic ride-hailing app developer and service provider, announced on Friday that it had received $1 billion from Apple. This is the first time Apple has invested in a Chinese internet company. Beijing News commented:

Of course, Apple has invested in Didi Chuxing for profit. Didi Chuxing has a leading position in China's ride-hailing market. But the investment also has strategic significance for the US tech giant.

Apple has already derived huge profits from Chinese consumers, even more than in the United States. By making such a large investment in the company, Apple is sending a clear signal it has confidence in the Chinese market and high expectations for the Chinese economy. Given the huge number of internet users in China, getting involved in the internet market in China will offer Apple a lot of opportunities to do business. This investment may be a springboard for its further development in China.

The market for Apple's iPhones is already shrinking, and Apple needs to look at new areas. Didi Chuxing has good technology that has enabled it to take a leading role in China's market, and, in doing so, it has also collected ample big data about Chinese consumers.

Meanwhile, Didi Chuxing not only gets $1 billion, but also a rare opportunity to enter the Apple chain. Their cooperation might change the balance in China's internet market and give rise to a number of changes.