Apple China: In a stunning news revelation, it has been understood that US tech giant Apple Inc has signed a secret pact with communists of China and has slowly captured the Chinese market with its products. The huge financial deal has said to facilitate Apple to establish new manufacturing centres as well as establish large number of apple Stores across China. With the pact it is understood that Apple has now captured China market which is second highest revenue generator of the company after the USA!
Apple China
A new report has emerged in the USA that claims that Apple has bribed Chinese authorities to the tune of USD 275 billion (equal to Rs 20 lakh crores) and got free all access pass to China market. Apple products were under less scrutiny as well as governmental regulations, and they expanded their base and presence in the market by capturing the market. It is reported that Apple CEO Tim Cook himself has struck the deal with China.
It all started with Tim Cook’s visit to China in 2016 and this secret pact between Apple and China was struck during that visit. This was the time when China started coming with lots of regulations from products from other nations. Cook understood that the communist nation was a bigger market for their company’s products and it was at this time that he decided to strike a deal with the communists ruling the country and make headway in the market. He visited China multiple times and lobbied with communists to get Apple a bigger market pie.
It looks like Tim Cook’s secret pact has worked out for the company and today Apple’s second biggest market for its products in China while America remains still the number one. But going by the company’s expansion plans in China, they are likely to see the Asian nation to be number one revenue generators for their company! In fact Apple smartphones are the highest selling smartphones in communist country.
As part of the deal, Tim Cook promised the country that Apple would invest $1 billion investment in Didi Chixin unit of the company; train the Chinese workers; establish new factories and retails stores; buy more raw materials for their products from Chinese companies; and collaborate with Chinese universities for research and development. More importantly, Apple CEO promised that the country’s economy will skyrocket with apple’s presence. Did it happen? The Chinese officials say no.
Nevertheless it seems the secret pact has worked out for Apple and last quarter the company has seen its net revenue from China was $14.64 billion and their sales revenue is up by 85 per cent against the same quarter in 2020.
Despite being questioned for Time Cook’s support to manufacture its products in China when entire world was against the communist country for the Covid-19 pandemic and its connections to the virus, the apple CEO brushed it aside and continued to strengthen the Chinese base by the day. He has been quoted as saying, “World peace through world trade. It was Apple’s responsibility to do business everywhere and that included China.”
The report which pointed out the secret pact said that there was no world peace with the tie-up it was only world trade. It alleged that seven suppliers to Apple in China were using forced labour which was against the human rights. The company CEO clearly denied the charges and said they have not found any evidence of forced labour in any of those units!