Apple invested $1 billion in Uber’s competitor in China

Apple invested $1 billion in Chinese service taxi Didi Chuxing, according to The Wall Street Journal. According to CEO Tim cook, quoted by Reuters, this move will help Apple to better understand the Chinese market.

“We make investments based on a variety of strategic reasons, including [that gives us] the opportunity to learn more about certain segments of the China market. Of course, we believe that these investments will bring strong returns over time,” cook said.

According to WSJ, Didi Chuxing is the main competitor of Uber in China. Total investment in Didi Chuxing valued at more than $25 billion, making it one of the most expensive startups in China.

Didi Chuxing makes 11 million trips per day and serves about 300 million users across China, Bloomberg cites a company statement.

According to analysts, investments Apple shows how the company can diversify its business amid a decline in sales of the iPhone, emphasizes Reuters. Apple have focused on rapidly growing revenue from its services such as Apple Music and mobile payments Apple Pay. This strategy should strengthen investment in the taxi service, said analyst Patrick Moorhead of Moor Insights & Strategy.

Investors are eagerly awaiting, will you include the Apple in the automotive business. The company has hired a large staff of experts in this field and studying the design of cars with the autopilot, sources say Reuters.

According to TECHnalysis Research analyst Bob O’donnell, Apple gets a much higher profit from iPhone sales than most automakers, but the investments require that the tech giant is considering a Shuttle service, which can be more profitable.

“These investments show that they are thinking not only about cars but also about the business models that are built around transportation, and this is a very interesting and encouraging sign,” — says the analyst.

Before it became known that Apple is the second time in 2016, lost the title of most expensive companies in the world Alphabet holding company, the parent structure Google. This occurred because of negative news from key partners Apple.