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Apple has been expanding its R&D push in China, one of the world's largest consumer electronics markets. Since 2017, it has established four R&D centers in the country - one each in Beijing, Shenzhen, Shanghai, and Suzhou - entailing a combined investment of 3.5 billion yuan (9 million) and employment for over 1,000 people dedicated to innovation in hardware, software and services.

Are there lessons to be learned from the failed aQuantive acquisition?

Apple, Facebook, and Twitter all moderately scaled back their M&A activity. In the last five years, Apple has made 44 acquisitions — a small number compared to Google’s 113 over that same period. However, its acquisitions have been some of the most varied, with deals in a variety of sectors including?LearnSprout?(education technology),?Mapsense?(location services),?Emotient?(facial tracking), and?PrimeSense?(semiconductors). In 2015, Apple dropped down from 12 to 11 acquisitions, and has shown?decreases in M&As in each of the past three years.

As billion is not a huge amount, it is more like a signal that the government expects to channel more capital inflows to support a strong Chinese currency and to maintain a stable foreign exchange reserve, according to Wu.

Apple rolled out its wireless headphone AirPods in 2016, followed by other mobile phone manufacturers such as Samsung, Huawei and Xiaomi.