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Apple CEO Tim Cook pledges to increase investment in China

Xinhua | Updated: 2024-10-24 01:45
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Apple CEO Tim Cook addresses the media next to the company's new Vision Pro augmented reality headset at the Apple Park campus in Cupertino, California. [Photo/Agencies]

BEIJING -- Apple CEO Tim Cook on Wednesday pledged to increase investment in China during his Beijing visit, which analysts believe highlights the importance of the Chinese market to the American tech giant.

In his second trip to the Chinese mainland this year, Cook met with China's Minister of Industry and Information Technology Jin Zhuanglong on Wednesday, discussing topics including Apple's development in China, online data security management and cloud services.

Cook said Apple is keen to seize the opportunities presented by China's opening up and will continue to increase its investment in the country, thus contributing to the high-quality development of the industrial and supply chains.

On Tuesday, Cook met with Yang Jie, chairman of telecom giant China Mobile. The two sides exchanged views on further advancing cooperation in 5G applications, music and VR videos, building on existing cooperative programs in areas such as digital content, according to a China Mobile statement.

Cook also met with Chinese college students at a "science and technology backyard" in Beijing's Shunyi District to learn how they are using Apple devices to help farmers adopt more efficient and sustainable practices.

In August 2023, the China Foundation for Rural Development set up a project to help "science and technology backyards" with social support. Apple was the first company to support the project.

Li Huimin, a student at China Agricultural University, and her research team have been developing an iOS app to provide extreme weather alerts, pest identification and pest warnings to raise fruit yields.

The app has been approved for testing and will be available after further improvements.

"The projects I just saw are amazing, and the students I met today are really motivated to make a positive impact for rural communities. I loved seeing how they're using technology to help farmers increase production," Cook said.

Chinese developers have thrived on the App Store. In 2022, roughly as in previous years, China accounted for 51 percent of the billings and sales facilitated by the App Store ecosystem, according to a study by Analysis Group.

During his Beijing trip, Cook also visited an Apple retail store in downtown Beijing, and met with developers at Chinese gaming company Gala Sports.

In his visit to Shanghai in March, Cook reiterated the company's long-term commitment to the Chinese market when he opened Apple's biggest retail store on the Chinese mainland.

"There's no supply chain in the world that's more critical to us than China," Cook said, noting that Apple will strengthen its long-term cooperation with its Chinese supply chain partners and work closely with them on green and smart manufacturing to achieve win-win results.

His visit reflects Apple's emphasis on the Chinese market and the company's market strategy of combining local characteristics with global thinking, said Wu Shu, founding partner of Beijing-based Potential Capital.

"This may be regarded as Apple's enhanced emphasis on the Chinese market, reflecting the strong magnetism of the Chinese market," Wu said.

Also on Tuesday and Wednesday, Jeff Williams, Apple's Chief Operating Officer (COO), visited its production bases and automated equipment suppliers in the cities of Suzhou and Changsha, including a Luxshare factory in Suzhou that assembles the iPhone 16 series.

According to Williams, over the past five years, Apple has invested as much as 20 billion U.S. dollars in smart manufacturing and green manufacturing in China.

The COO said he was amazed by how much things have changed since his first visit to China with Apple in 1998 when production was still simple.

"Today when I walked through the lines, I saw the level of sophistication and automation. I'm truly impressed with the progress that has been made," Williams told Xinhua in an exclusive interview. "Some of the most advanced automation in the world is happening in China."

Apple's new iPhone 16 lineup is off to a strong start on the Chinese market, with sales up 20 percent in the first three weeks after launch compared with the iPhone 15 series in 2023, data from market research firm Counterpoint Research showed.

As China's "Double 11" online shopping event approaches, electronic items, along with other products, are expected to experience a surge in sales.

With the introduction of a host of incremental policies, China's economy continues to show resilience and remains an attractive destination for foreign investment, Wu said. China's opening-up policy and large market provide important opportunities for enterprises from all over the world, including the United States, he added.

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