The Chief Executive of Apple, Tim Cook, claimed that the smartphone app developers based in China who use App Store, number 1.8 billion, and have reportedly earned the company a profit of $16.93 billion. This figure represents a quarter of the total global App Store earnings.
Apple announced earlier this year that the developers based in China had earned them around $70 billion in revenue.
China represents the third largest sales region for Apple, but it has recently lost market share, especially as high-end smartphones continue to be launched from local rivals. Apple hopes to regain strength in the market, especially after the launch of their new phones – iPhone 8 and iPhone X, which shipped to China in November. The giant technology company said it had moved its cloud data in the servers of local partners in the Guizhou Province.
In a separate context, Chinese billionaire Pony Ma, the founder of Tencent, adopting different strategies from his compatriot Jack Ma, has transferred a range of the company’s investments with a group of founding partners to US companies. Thus, a 10% stake in Tesla, 10% in Snap, and recently did a stock swap with Spotify for 10%, for live video and music services.
The main reason for the Chinese billionaire’s investment in these companies is that it Tencent is one of the few companies that giants such as Facebook, Apple, Amazon, Google compete with. Tencent may not be known to American consumers, but it has recently become the first Asian technology company worth $500 billion. It has even formed a long-term partnership with the biggest Internet companies in the US.
Amazon helped Bonnie Ma invest in their new phone, and in return, Tencent supported the “League of Legends” game on Twitch, Amazon’s streaming platform.
With 2017 coming to an end, it’s no doubt that Tencent represents a silent threat to US technology giants, as the company continues to rank close to a medium-sized company in the Silicon Valley.
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