Apple to Build Two Additional R&D Centers in China

Apple announced today that it will set up two additional research and development centers in China, to go with the two locations in the country that it announced last year. The new R&D centers will open in Shanghai and Suzhou, the company said in a statement on its Chinese website on Friday.

Apple hopes the centers will help it to attract graduates from institutes such as Peking University, Tsinghua University, and Shanghai Jiaotong University, and has partnered with schools in the region to offer internship programs, in the hope of developing experts to work closely with its regional supply chain.

Shanghai, China

"We are looking forward to working with more local partners and academic institutions through the expansion of R&D centers in China," said Dan Riccio, senior vice president of hardware engineering at Apple. "We are honored to have access to excellent talent and a positive entrepreneurial spirit in the region, where our developers and suppliers will be working together.

Apple's attempt to boost its presence in the country began last September with the opening of its first R&D center in Beijing's Zhongguancun Science Park, often referred to as "China's Silicon Valley". Another R&D center, this time in Shenzhen, was announced the following month.

Apple has pledged to invest more than 3.5 billion yuan ($508 million) in research and development in the country, in a bid to address dwindling returns on its Chinese iPhone business as consumers opt for low-cost mobile alternatives. Apple has also experienced pushback in other areas of its China plans, including the closure of iTunes and iBooks Stores.

Apple is expected to have completed construction of all its research and development centers in Beijing, Shenzhen, Shanghai, and Suzhou later this year.

Tag: China

Top Rated Comments

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triton100

37 months ago

Cool we can expect even faster Apple product knock offs now (eye roll emoji)

Rating: 4 Votes

Michaelgtrusa

37 months ago

Why not just move to that western created nation, then, we will create a new American owned tech company. Sold us out a long time ago.

Rating: 3 Votes

NachoGrande

37 months ago

Designed in California :(

Rating: 3 Votes

cube

37 months ago

You go where the talent is.

Apple shows low wages are the first priority.

Rating: 3 Votes

BlandUsername

37 months ago

You go where the talent is.

You go where the manufacturing can be hidden from the public eye easily.

Rating: 3 Votes

michaelsviews

37 months ago

Yup, employ all those folks that came here on free money for an education and took it back to China. Can't wait to read headlines like "Apple stock delisted today".

Should have just built the new campus "Spaceship" in China, probably would have been built twice as fast also.

What about the brand new R&D building at the new campus? How many R&Ds do you need? Or what back door things are you doing?

Apple is not apple anymore, could give 2 ****$ about there computer lines and all i this and i that is there primary priority.

Rating: 3 Votes

now i see it

37 months ago

Investing 3.5 billion to figure out a way how to compete with cheaper Chinese phones...

Rating: 2 Votes

GrumpyMom

37 months ago

Investing 3.5 billion to figure out a way how to compete with cheaper Chinese phones...

Yeah, that was my first reaction to this news. Don't forget this is on top of that billion dollar investment they made into Didi Chuxing...for what return...only Apple knows. Meanwhile those Chinese competitors are making some inroads here in the US and in Europe with some very nice phones. That tells me there's a market here and in Europe that China sees but Apple has blinders against.

I really can't understand Tim's obsession with an increasingly hostile and exclusive Chinese market when there are countries in Europe and other parts of Asia that may be more receptive and who have well educated tech people. Their investment in Vietnam that MR reported on awhile back was a promising start.

I know among my friends someone who works for a company that's starting to invest in R&D in Romania, for example. They've got well educated workers and the cost of living and doing business there is low enough to be attractive. Seriously, looking at the complaints from European members of this forum on how poorly Apple services work for them, I'd say Apple needs to get some European minds at work to make Apple products and services suit their needs better.

Meanwhile, back at China, Apple is going to be working with people who are in an environment where their no-compete agreements may not be enforced and who may leave and go to work for the Chinese competition, thus leeching more innovation to a nation whose companies are infamous for copying. Of course...some of these companies are actually starting to innovate. Maybe Apple intends to poach employees from them. Who knows.

I'm not anti-Chinese and I'm not saying I know better than Tim Cook what best suits Apple's long term interests. I'm just saying from the peanut gallery, it's hard to make sense of it all.

All I know for sure as I struggle to wake up over half-caf coffee is that Apple sure has been throwing a lot of billions around the world but penny pinching in its own backyard.

Rating: 2 Votes

kelake

37 months ago

You go where the talent is.

Rating: 2 Votes