In an Aug. 19, 2016 article in TheStreet.com, I forecast that the combination of Apple's (AAPL) - Get Report investment in Chinese ride sharing company Didi Chuxing, and SoftBank's acquisition of British chip designer ARM and investment in Didi would be a catalyst for Apple to enter the self-driving market.
In a report today in the Nikki Asia Review entitled "Didi Chuxing willing to work with Apple on self-driving tech," we learned that the companies will soon be working together, according to Didi co-founder Wu Rui.
The revenue potential for Apple is potentially huge. The investment by Apple in the Chinese ride sharing market opens endless possibilities for the company, most prominently a ready-made market for Apple's self-driving cars.
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Consider the following:
- Ridesharing revenues
- Greater iPhone sales in China and India
- A more positive, profitable relationship with the Chinese government
- An opportunity to align its strategy in India, one of the fastest growing markets for iPhones.
- Greater revenues from iPhone Apps
- Greater revenues from iPhone Maps
- The Uber Connection
Another part of my article discussed Tesla and how its incursion into ride sharing could impact Apple's endeavors. In my opinion, CEO Elon Musk will reveal his strategy in this direction once more pressing issues such as the acquisition of SolarCity and Model 3 production get ironed out.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.