What Apple Hopes To Get Out Of Its Didi Chuxing Investment

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Was Apple Inc. AAPL $1 billion investment in China-based Didi Chuxing politically motivated? If so, what can Apple stand to gain from its investment? These are some of the questions that Recode's Edmund Lee answered as a guest on CNBC.

Lee started off by noting the Chinese government "likes" the fact that Apple investing $1 billion in one of the country's own "home grown players." Even if the investment was more political than financial, the question remains what is considered an appropriate return for Apple.

"In terms of Apple's relationship with the government, that's a harder thing to measure," Lee said.

Related Link: Uber's Rival And Apple's Latest Investment May File For A 2018 IPO

However, if in one year from now Apple's iPhone sales in China have risen and the company has returned to selling media related services, then its investment in Didi Chuxing will be considered a success.

On the other hand, Apple's investment in a ride-sharing platform could fit in with its longer-term objectives of potentially entering the auto space. Lee did suggest this thinking is "secondary" for Apple as the investment is indeed "primarily a political play."

Shares of Apple were trading higher by nearly 2 percent Monday morning.

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