Tim Cook on goodwill mission, hoping to shore up Apple’s position in vast China market

“For Apple Inc. Chief Executive Tim Cook, the demands from China are growing and his bargaining chips are dwindling,” Eva Dou reports for The Wall Street Journal. “Beijing is pushing western technology companies like Apple to meet increasingly stringent regulations for data storage and information sharing, while falling iPhone production means the U.S. tech giant’s suppliers and contract manufacturers aren’t the employment drivers they used to be.”

“With Apple’s sales tumbling, the Chinese government’s support waning and a new iPhone coming out, Mr. Cook is on a goodwill mission: meeting with government officials, touring Chinese Apple stores and speaking with local residents,” Dou reports. “Mr. Cook pledged to increase investment in China in a meeting with Vice Premier Zhang Gaoli in Beijing on Tuesday. He continued to the central Chinese city Chongqing on Wednesday, where he toured an Apple store with the mayor.”

“Mr. Cook’s latest investment pledge is a reminder of China’s longstanding expectations for foreign companies,” Dou reports. “In exchange for access to China’s vast customer base—the country is the world’s biggest smartphone market and internet market by users—foreign enterprises are expected to help the local economy through investment and technology transfer.”

Read more in the full article here.

MacDailyNews Take: Expect even more pay-fo-play from Apple in the future.

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  1. Well I hope there is clarity in Apple’s minds that China is not a panacea but a potential minefield of headaches and compromises. Not to mention essentially misappropriated technology used against any who do business in China. Perhaps it’s time to look at shoring up within U.S. shores?

  2. Tim Cook better know what he is doing. China has NO respect whatsoever for IP and is demonstrably anti-western when it comes to their domestic laws. Just as Google and Facebook how well doing business in China is.

    China can and will shut down Apple’s media sales at the drop of the hat. That doesnt even count how much internal roadblocks will be put in front of Apple for EVERYTHING they do. It takes 10 times the amount of time and effort to get things done in China.

  3. The Chinese government aren’t going to be shutting Apple down, that’s just silly talk. They’re very keen on foreign businesses jobs and investment — that’s the nature of their (mostly) free-market economy.

    Of course Cook knows what he’s doing.

    He’s Steves’ logistics guy, remember?

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