News of Apple's $1 billion investment in the Chinese Uber broke late Thursday, right after the company lost the title of "world's most valuable" to Google.
The story had everything. The tech press went nuts.
See what I'm up against?
Apple 3.0
The story had everything. The tech press went nuts.
See what I'm up against?
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Claimer: I have never been interested in Twitter’s approach to messaging.
First off, Apple is the only big American tech company to have a strong presence in China. They keep a lot of Chinese workers employed, and as a consequence the Chinese gov’t gives them access to their market. It is a symbiotic relationship that essentially keeps them joined at the hip and arguably protects Apple from being excluded like other U.S. companies have been by protectionist factions in the Chinese gov’t. The relationship isn’t perfect, as the recent blocking of their iTunes Tv and book sales shows, but that is more likely related to certain Chinese gov’t agency’s penchant for content related censorship than a business decision. China’s history in this regard is downright Orwellian.
But the future of how hundreds of Chinese will get around, particularly in cars, is wide open for technological innovation. China’s pollution problems are very serious, and they have a rapidly growing middle class – that Tim Cook has enthusiastically pointed out will grow 10-fold over the next 5 years or so, if I recall correctly – from 50 million to 500 million.
Point being, this is a place where Apple can compete much better against other foreign car companies by introducing new eco-friendly cars than arguably anywhere else. Didi is just the first tiny step in a very large Chinese car category.
This was something that stuck out to me (and I’m sure many others) from the early days of the first rumors. Electric cars in a Chinese market. It seems an easy sell and one that will help boost your standing with the government (since you are helping to solve a problem they have). Additionally autonomous vehicles face the hurdle of existing safety standards and laws written with human controlled vehicles in mind. As a market, China has the advantage of being able to rapidly modify its laws when it suits its own needs. Centralized governments are bad for a bunch of reasons, but the efficiency of regulatory change is not one them. Things may be made legal or illegal very rapidly, or at least more rapidly than anyone can imagine the US getting all its automotive regulations in line with self driving cars.
It seems no surprise that Apple is exploring transportation in China. They are also exploring green power generation. What could they possibly be thinking?