Apple announced in May a $1 billion investment in Chinese ride-hailing service Didi Chuxing, a rare move for a company that tends to hang on to its cash. Cook weighed in on the decision on Tuesday, and his remarks touch on three strategies that have been at the nexus of Wall Street's commentary.
"We obviously invest a lot of capital in our business itself to support research and development," Cook said. "However, we're constantly looking on the outside for great talent, and great intellectual property. And we have been buying companies, on average, every three to four weeks or so."
"In terms of the investment in Didi, it was an unusual investment in that, as you know, we don't have a long history of doing a lot of these," Cook told investors on a conference call following the third-quarter earnings report. "We have done some before. We invested in ARM in the early days, we invested in Akamai and a few other companies, so it wasn't the first. From a Didi point of view, we see that as one, a great investment. Two, we think that there's some strategic things that the companies can do together over time. And three, we think that we'll learn a lot about the business and the Chinese market beyond what we currently know. Didi has an incredible team there. That's sort of the rational for why we did that."