Apple Announces R&D Center in China; To Be Built by the End of This Year

BY Rajesh Pandey

Published 16 Aug 2016

image Tim Cook in China

On his second visit to China this year, Apple’s CEO Tim Cook has announced that the company will be building its first research and development center in the country. This will also be Apple’s first R&D center in the Asia-Pacific region.

As per Tim Cook, the R&D center will be built by the end of this year. The CEO made this announcement while speaking to Vice Premier Zhang Gaoli, a senior most Chinese official. The head of the country’s industry and technology regulator in May had told Cook that he hoped Apple could work even closely with the country in research and development.

Apple’s new research and development center will be built by the end of the year, Cook told Vice Premier Zhang Gaoli, one of China’s most senior officials, according to the official Chinese state broadcaster.

In his visit to China earlier this year, Tim Cook had announced an investment of $1 billion in Uber’s Chinese rival Didi Chuxing. The investment later played a key role in Uber ultimately deciding to merge with Didi Chuxing in China.

China has become an increasingly important region for Apple as it looks to expand its sales in the country. While the companies investment were earlier paying off, iPhone sales have recently slowed down in the country with local Chinese OEMs now dominating the market. The company’s revenue from China dropped by 33 percent in the second quarter of this year alone.

The Chinese government policy of favoring local companies has also been an additional hurdle for Apple as it has been the target of lawsuits from many patent trolls.

[Via Reuters]