Copyright Getty Images
Industryweek 13230 Apple Getty
Industryweek 13230 Apple Getty
Industryweek 13230 Apple Getty
Industryweek 13230 Apple Getty
Industryweek 13230 Apple Getty

Apple Plans Two More Chinese Research Hubs as iPhone Sales Slow

March 17, 2017
The research centers in China will help Apple cooperate with local partners and attract talent from its local suppliers as well as from top educational institutes, the iPhone maker said.

Apple Inc. (IW 500/2) has revealed plans to set up two more research centers and boost investment in China, a pivotal market in which the iPhone has been rapidly elbowed aside by local rivals.

The announcement comes as Chief Executive Officer Tim Cook undertakes his latest trip to a country that ranks as Apple’s single biggest overseas market. Apple said it plans to build new research facilities in the eastern Chinese cities of Shanghai and Suzhou, on top of centers already slated for Beijing and the southern city of Shenzhen. It also pledged to spend at least 3.5 billion yuan (US$507 million) on research institutions.

All four centers will open later this year, the company said in a statement on its Chinese website. They will help Apple cooperate with local partners and attract talent from its local suppliers as well as from top educational institutes, according to its press release.

The announcement came a day before Cook is scheduled to address a high-profile economic forum in Beijing, where senior government officials will confer with the heads of some of the world’s biggest corporations, including Royal Dutch Shell Plc and Saudi Arabian Oil Co.

Foreign companies have a long-established tradition of building research bases in China to both signal their commitment to the country and curry favor with the government. Apple’s announcement comes after iPhone shipments fell for the first time in China on an annual basis, in 2016.

China had for years driven Apple’s spectacular growth, even as smartphone demand elsewhere faltered. But local vendors like Huawei Technologies Co., Oppo and Vivo are now eroding its market share with increasingly high-end devices. The U.S. company is counting on the release of the 10th anniversary iPhone later this year to supercharge growth.

By Bloomberg News

Popular Sponsored Recommendations

Learn How Manufacturers like 3M Cater to Digital Buyers to Increase Sales

Aug. 13, 2023
In this article, you'll learn how manufacturers can balance educating and guiding their buyers through their complex buying process with a digital first approach to product discovery...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!