GLOBAL MARKETS: Apple doubles down on China
While Tesla takes strain
Apple doubles down on China
Apple is binding itself more closely to China as its share of the world’s biggest smartphone market slips and it becomes more reliant on selling services that require government approval.
Last weekend it moved to block apps used to evade the country’s Internet censors, which fits with Beijing’s recent crackdown on unapproved online content.
The company will establish its first China data centre in the politically important province of Guizhou, and it has created the new position of managing director for greater China. Reuters
Tesla taking strain
Tesla shares dropped 3.5% this week after CEO Elon Musk warned that the electric carmaker would face "manufacturing hell" as it ramps up production of its new mass-market Model 3 sedan.
Musk said customers had made more than 500,000 advance reservations for the vehicle, setting the stage for a major test of Tesla’s strategy to become a profitable electric carmaker. Cash-losing Tesla is counting on the Model 3 to help turn it into a profitable company.
Investors already sceptical of Tesla’s aggressive growth targets have focused on a warning by Musk that early production would be challenging. Reuters