Short on time. I will just copy-paste my four tweets on the news for the time being:
- $AAPL and cars, a first move: Apple Invests $1 Billion in Chinese Ride-Sharing Company Didi Chuxing: www.macrumors.com/2016/05/12/apple-inves.../
- About Didi: The company completes more than 11 million rides/ day, more than 87% of the market for private car-hailing in China. $AAPL
- My long-term thesis on $AAPL and transportation since 2013: What if Apple one day made a "car" (cocoon) that you can neither buy nor drive?
(i.e fully autonomous rides coupled with "Transport As A Service" for people living in large urbanized areas where it's very expensive to own/park a car. This is a long-term scenario for the next decades.)
- $1bn for Didi is one of largest M&A moves $AAPL ever made (aside from ~$3bn in Beats). Apple is very frugal with $: https://en.m.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple … Shows strategic importance of this investment in Apple's eyes.
More to follow later in a later Instablog or article.
PS: Given the general importance China has for Apple and in view of some recent spats with Chinese authorities...
...it certainly didn't hurt to make the car investment in a Chinese firm instead of a Western ride-sharing company.
It also shows that Apple doesn't want to repatriate its money stash due to tax reasons:
Disclosure: I am/we are long AAPL.
Additional disclosure: Small position in AAPL. Will likely add to position around or below $90 in coming weeks / months.