Tim Cook’s "secret" $275 Bln Deal Behind Apple’s Success In China
Apple CEO Tim Cook reportedly signed a massive $275 billion deal with China in order to help the company get into the market. The “secret” meeting took place back in 2016.
An extensively researched article by The Information states that Tim Cook personally lobbied the officials to crack a closer alliance with the Chinese leadership in order to resolve the apparent bad reputation the company had in the country. In 2016, Apple was facing successive regulatory blockades in the most-populated country and by 2021, the same country has become the second-largest consumer of Apple products followed by the US.
According to the reports, the repeated threats against Apple Pay, iCloud and App Store, made Cook make repeated trips to China to come up with the deal. Cook finally landed a “memorandum of understanding” between Apple and the National Development and Reform Commission to come to a settlement for which the regulators will allow Apple in the market.
This was followed by Apple investing $1 billion in Didi Chuxing, which announced its exit from the NYSE last month. Starting from this, all the regulatory lawsuits against Apple were slowly lifted and the company was allowed to close important business deals as well as train workers in China.
The report also claimed that the deal included clauses that meant that Apple will help China develop new technologies as well as train the Chinese youth. Apple was also supposed to trade with more Chinese part-makers, software firms, and universities contributing to the upheaval of the economy. Apple also promised monetary investments in retail stores, research and development facilities, and other projects which roughly amount to $275 billion through 2021 and if the deal helps both the parties, it will be automatically extended till 2022.
The report also focused on the fact that the company is severely reliant on Cook’s communicative and negotiating mastery for cracking new horizons for the company. As the present CEO has already hinted at his resignation during the 2020s, the report has surely piled on more pressure on the company hierarchy to find a suitable successor to the illustrious leader.
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