Apple Inc. (NASDAQ:AAPL) CEO, Tim Cook, is on a damage control in China as the tech giant continues to grapple with one of the worst downturns in years. IPhone sales declining for the first time in 13 years has spooked the tech giant forcing an immediate response in a bid to shore up things.
Cook’s China Visit
Cook visit to China also comes just days after the tech giant confirmed it had invested $1 billion in ride sharing service Didi. The investment came as a surprise as Apple Inc. (NASDAQ:AAPL) has a long-standing tradition of developing ideas in-house, rather than investing in standalone startups. However, faced with Iphone sales slumping and a stock pile of cash the investment may prove to be a brilliant move.
The tech giant CEO is using his latest trip to China to mend relationships, not only with the government but with developer’s as well. While attending a meeting hosted by Didi Chuxing’s President Jean Lui at the Apple store, Cook met developers from some of the country’s top apps including MeituPic, news provider Toutiao.com and game developer Tap4Fun.
Cook took the opportunity to make it clear Apple Inc. (NASDAQ:AAPL)’s intention of working with the developers in developing China’s digital life. The sentiments come at a time when the tech giant has been at crossroads with regulators in the country.
Apple’s China Woes
The blocking of Apple iTunes Moves and iBook Store are some of the challenges the iPhone maker has been grappling with in the recent past. Cook is expected to use the opportunity to meet government officials as he looks to mend relationships.
Billionaire investor, Carl Icahn has already raised the red flag about Apple’s prospects going forward as regulators continue to crack the whip.
“You worry a little bit — and maybe more than a little — about China’s attitude,” Icahn said at the time, adding that China’s government could “come in and make it very difficult for Apple to sell there.
Cook has already quashed the concerns reiterating that Apple Inc. (NASDAQ:AAPL)’s woes in the communist nation have been blown out of proportion. In a bid to underline confidence in the marketplace, the company made a $1 billion investment in the ride-sharing service Didi.