Apple Inc (NASDAQ: AAPL) could become China's sole U.S. streaming service.
In 2023, the iPhone maker discussed introducing its Apple TV+ video streaming service in the country via a deal with leading telecommunications provider China Mobile, the Information reports.
China can help Apple's streaming service reach over 200 million Chinese mobile broadband customers.
In the U.S., Amazon.com Inc (NASDAQ: AMZN) Amazon Prime Video and Netflix Inc (NASDAQ: NFLX) command leading positions in the streaming industry with market shares of over 20% each. According to reports, Apple TV+ has a 7% market share.
So far, Apple has succeeded in maintaining a balance with its most significant trading partner despite growing geopolitical tensions between the U.S. and China. The tensions were aggravated when the U.S. imposed advanced chip sanctions on China, restricting its access to sophisticated AI chips from Nvidia Corp (NASDAQ: NVDA) and other U.S. chip designers.
In 2023, Apple boosted its number of China-based suppliers and manufacturing sites. The company launched a new Apple store in Shanghai, and company CEO Tim Cook attended the China Development Forum in Beijing, underscoring the market's importance.
iPhone sales in China grew by 52% year-on-year in April.
Apple also discussed integrating Baidu Inc's (NASDAQ: BIDU) advanced generative artificial intelligence (AI) technology into Apple devices within China.
Apple stock gained over 8% in the past 12 months. Investors can gain exposure to the stock via iShares U.S. Technology ETF (NYSE: IYW) and Fidelity MSCI Information Technology Index ETF (NASDAQ: FTEC).
AAPL Price Action: Apple shares were trading flat at $194.04 at the last check on Tuesday