Apple R&D Center Reportedly Confirmed for Shanghai

[MacRumors]

BrightWire summarizes a report [Google translation] from Chinese financial news site yicai.com noting that the city of Shangahi has officially announced Apple will open a new facility including some research and development operations in the city this summer.

- Shanghai Municipal Commission of Commerce has announced that Apple will open its R&D center this summer.

- Apple has registered three firms in three buildings in Pudong, Shanghai, and one of them will be dedicated to procurement management and R&D, according to documents on the Shanghai Municipal Administration for Industry and Commerce's website.

While Apple had previously been reported to be developing an R&D facility in Beijing, the Shanghai plans have reportedly been underway for quite some time. Initial reports of a Chinese R&D facility emerged following a meeting between Apple CEO Tim Cook and the acting mayor of Beijing just two weeks ago, so it is unknown whether those plans are still in the works.

China is an enormously important market for Apple, with revenues of $7.3 billion in the last quarter alone. Cook described China as Apple's second largest region.

If you look at our total Greater China, which would include our retail stores in China, our revenues were $7.3 billion in the quarter. So this is incredibly high, it's up over 60% year-on-year ... It's clear that China is already our second-largest region ... and it's clear that there's a lot of potential there.

A key challenge for Apple in China is that its products are typically too expensive for workers on an average salary. Apple recently introduced payment plans of up to two years, and the rumored low-cost iPhone is also expected to be offered in the Chinese market.

Article Link: Apple R&D Center Reportedly Confirmed for Shanghai

[gregwyattjr]

and it's clear that there's a lot of potential there.

It's also clear that there are a lot of people there.

[CyberBob859]

[newdeal]

even though it may be too expensive for the average salary I remember a story of young people selling vital organs in China to get ipads etc

[topmounter]

Originally Posted by CyberBob859

Image

They were changing that to "Incremental Improvements by Apple in California" anyway.

[wrkactjob]

Hope their DLP program is up to scratch.

[RolyPolyBird]

The human rights abuses in China are unacceptable and things are not getting better. You have got to wonder if this is a strategic move by Apple, done purely to give them more negotiation power against the Chinese Government and in their "courts".

Why would they choose Shanghai over Taiwan or Hong Kong or even a Japanese or Australian city?

[everything-i]

Originally Posted by RolyPolyBird

The human rights abuses in China are unacceptable and things are not getting better. You have got to wonder if this is a strategic move by Apple, done purely to give them more negotiation power against the Chinese Government and in their "courts".

Why would they choose Shanghai over Taiwan or Hong Kong or even a Japanese or Australian city?

Think you pretty much nailed it there.

[hollin]

Is it just me or is "reportedly confirmed" an oxymoron?

[Intarweb]

While this doesn't wont happen because of this move, the moment I see 'Designed by Apple in China,' on an Apple product I purchase, I'm done with them.

[Popeye206]

This will be a good move for Apple... the Chinese market is unique in many ways and having local talent to help make iOS and other Apple products more friendly to these cultures will help. A smart move for Apple in the long run.

[lixuelai]

I was just in Shanghai last week and went to check out the Apple store. Largest and most crowded Apple store I've ever seen.

Anyway as for location Shanghai is about as close to the center of East Asia as you can get (2-3 hours flight time to pretty much every major city). Location is very ideal geographically and is the main reason the city became so important economically in fairly recent history.

As for human rights abuses honestly very few people in China really care about it. People are more concerned about the air they breath and the baby formula they are feeding their kids. Though I guess having a habitable environment is a human right as well.

p.s. That picture of Shanghai is way too flattering.

[Codyak]

Originally Posted by Popeye206

This will be a good move for Apple... the Chinese market is unique in many ways and having local talent to help make iOS and other Apple products more friendly to these cultures will help. A smart move for Apple in the long run.

This is what I was thinking, rather than all Apple products changing to Designed By in China, this place will just designing products specifically for them/the Asian market. Where as everywhere else will still have products designed in California.

[arbitter]

Originally Posted by RolyPolyBird

The human rights abuses in China are unacceptable and things are not getting better. You have got to wonder if this is a strategic move by Apple, done purely to give them more negotiation power against the Chinese Government and in their "courts".

Why would they choose Shanghai over Taiwan or Hong Kong or even a Japanese or Australian city?

You're forgetting it is another culture there then over here. I'm not saying child labour and such is justifiable, it's just... You can't really compare it with situations in Western-Europe or North-America.

And I presume they're choosing Shanghai because of the massive interest and growth potential in China.

[leo.andres.21]

Apple obviously wants to increase their level of innovation, but most of their cash ($97bn) lies overseas. So if they put their R&D overseas in like China, they could take advantage of all that unused cash.
I think this is a smart move by Apple to utilise the cash. The economy is better now than a 3-4 years ago, holding so much cash is not necessary.

[TimUSCA]

Originally Posted by hollin

Is it just me or is "reportedly confirmed" an oxymoron?

No, it simply means someone else is reporting the confirmation, and MacRumors cannot confirm is themselves.

[winston1236]

Originally Posted by Codyak

This is what I was thinking, rather than all Apple products changing to Designed By in China, this place will just designing products specifically for them/the Asian market. Where as everywhere else will still have products designed in California.

Not sure i follow. The Chinese already go crazy for iphones and pads, the only problem is cost. This is probably a move to outsource design to save money.

[xlii]

The start of outsourcing Apple engineering jobs to China has begun.

[sarge]

Originally Posted by lixuelai

As for human rights abuses honestly very few people in China really care about it. People are more concerned about the air they breath and the baby formula they are feeding their kids. Though I guess having a habitable environment is a human right as well.

I imagine this is exactly why handing the torch over might be of concern

[pgiguere1]

Soon:

"Designed by Apple in China"
"Assembled in USA"

[robanga]

THey could flip it to:

Designed in China, Made in the USA

...kidding

Good move for Apple to spread their business into that important market.

[coolspot18]

Originally Posted by RolyPolyBird

The human rights abuses in China are unacceptable and things are not getting better.

And why do you say that? Things in China are much better than 50 or even 20 years ago.

A bit more perspective, the West's hands are not blood free either. Since the 90s, the United States has been involved in at least 4 or 5 major wars? China has been in none.

I think it's hypocritical for people from certain western nations to talk about human rights ...


In anycase, if you've been to China recently, most people happy with how things are. Yes, the country can do with more freedom of speech, better laws, equality, etc, but those things come with time. You don't want an overnight revolution, or else you end up with basket cases like Russia, Libya, IRaq, Afghanistan, etc.

[lifeinhd]

Originally Posted by Intarweb

While this doesn't wont happen because of this move, the moment I see 'Designed by Apple in China,' on an Apple product I purchase, I'm done with them.

Why? China's economy advancing and them becoming an engineering powerhouse is a good thing for everybody. It increases the world's wealth.

[topomango]

wow, very good apple strategy: milking as much as possible on Steve's ideas. You do not sell anymore in EU/US? let's expand the market!. Good job Tim, what is next? ipad midi? iphone mini? zero innovation. The same concepts recycled over and over again. It reminds me of Sculley's great ideas in the 80's.

[cameraguy]

That tower in that pic sure look allot like the CN Tower in Toronto. Toronto should sue, I'm sure there's a patent on that