Apple Deal with China: China is among the largest markets for Apple, with annual sales growing by 83 % in China during the fourth quarter of its fiscal year.
Apple President Tim Cook signed an agreement with Chinese officials estimated to be worth around $275 billion (roughly the equivalent of.
20,75,700 crore) to ward off the threat that would have hindered Apple’s products and services in China, The Information reported.
Apple has not yet responded to a Reuters request for comments.
The five-year deal was signed when Cook visited China in 2016 to halt various regulatory actions against Apple, as reported by the report citing interviews and Apple internal Apple documents.
HIGHLIGHTS
- Tim Cook lobbied Chinese officials
- A portion of the investment made in China could be put towards building new retail stores.
- Apple stated that it would make use of more excellent components from Chinese suppliers.
Cook campaigned with Chinese officials, who felt that the company wasn’t providing enough value to China’s economy, and signed the deal with a Chinese official agency.
The document also signed the agreement with a Chinese government department, which made concessions to Beijing and secured critical legally-enforceable exemptions.
A portion of Apple’s investment in China will go towards the construction of more retail outlets, new research and development centers, and the development of renewable power projects, according to the report, according to agreement.
China is among the largest markets for Apple, with an annual growth of 85 percent in China during the fourth quarter of its fiscal year.
As part of the deal, Apple promised to use more components made by Chinese manufacturers in their products.
Sign deals with Chinese software companies, cooperate in technologies with Chinese universities, and invest directly in Chinese tech firms, The Information report stated.
