Huberty, CFA — Morgan Stanley May 16, 2016 5:00 ,4M GMT We see positive near- and long-term implications from Apple's unexpected $1B investment in Didi Chuxing. Apple can learn more about the services business, especially in an important market like China, and maybe one day deploy its own cars as-a-service

ehicles, and 4) Faster technology cycles which average 1-2 years, at most, compared to auto design cycles of 5-7 years. Apple's recent investment in Didi Chuxing signals an interest in shared rather than owned vehicles creating a recurring revenue stream at maturity. With Apple outspending the major auto OEM

week You select the topic, we deliver the news. The move follows Tencent's previous automotive investments including Chinese ride- hailing company Didi Chuxing and mapping group Here. The latter's other shareholders include BMW, Mercedes owner Daimler and Audi. Tencent said in a regulatory filing with the