Apple to Build Two Additional R&D Centers in China

Discussion in 'Mac Blog Discussion' started by MacRumors, Mar 17, 2017.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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
    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.

    Article Link: Apple to Build Two Additional R&D Centers in China
  2. triton100 macrumors regular

    Dec 15, 2010
    Cool we can expect even faster Apple product knock offs now (eye roll emoji)
  3. Michaelgtrusa macrumors 604

    Oct 13, 2008
    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.
  4. Cineplex macrumors 6502a


    Jan 1, 2016
    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".
  5. michaelsviews macrumors 65816

    Sep 25, 2007
    Upstate NY

    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.
  6. Cineplex macrumors 6502a


    Jan 1, 2016
    All these R&D centers and the next iPhone will look identical to the current. Maybe the iPhone SE2 will be a higher spec 3GS!
  7. Robert.Walter, Mar 17, 2017
    Last edited: Mar 17, 2017

    Robert.Walter macrumors 65816

    Jul 10, 2012
    Mixed feelings on this.

    Would be nice to hear that these campuses were located in the USA outside of Cupertino, maybe Detroit (although that would be anathema for the US carmakers due to then having to compete for talent)...

    On the other hand, talent is dispersed worldwide, and you can't always import that talent back to your HQ due to factors like immigration rules and space constraints or the talent prefers to remain in or near their home.

    It's foolish to ignore foreign talent because you can't physically get them to your HQ. (Also, those that work with the local manufacturing facilities or supply chain are best located closer to those operations.)

    Probably good they do this but I wonder how they retain that talent as Chinese move companies with much more ease than folks in the occident, that fluidity is a risk to losing talent, and IP (I wouldn't be surprised to hear that many Apple supply chain links are due to folks planning on or leaving left to a employer.)
  8. NachoGrande macrumors 6502a

    Mar 30, 2010
  9. Denmac1 macrumors 6502a


    Apr 22, 2007
    Lost in Space
    Are they even designing anything new?
  10. 1applerules1 macrumors regular

    Nov 17, 2015
  11. michaelsviews macrumors 65816

    Sep 25, 2007
    Upstate NY
    Not from what we are seeing. Granted there's some guy sitting behind the CAD computer saying ok take the 9.7 iPad and make it into a 12.9 . Yes I know there is much more too it but how many people does it take? The logic boards are made at request to the buyers specifications. Once again Im sure there is more to it but from what we "CONSUMER/USER" Theres NOTHING NEW and exciting. The keyboards on the MBPs sound like bubble wrap being popped in the distance. Seriously thinking it's time to move on from the Apple Eco system. Windows is definitely NOT an option, and the fact that all the software I use is available on linux. Sorry I'll get down off my pedestal now.
  12. theheadguy macrumors 65816

    Apr 26, 2005
    Why is windows 10 "definitely not" an option?
  13. now i see it macrumors 68000

    Jan 2, 2002
    Investing 3.5 billion to figure out a way how to compete with cheaper Chinese phones...
  14. GrumpyMom Suspended


    Sep 11, 2014
    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.
  15. kelake macrumors newbie

    Jul 1, 2015
  16. cube macrumors G5

    May 10, 2004
    Apple shows low wages are the first priority.
  17. BlandUsername macrumors regular


    Jan 18, 2016
    In yer server room, fixing the tubes
    You go where the manufacturing can be hidden from the public eye easily.
  18. GrumpyMom Suspended


    Sep 11, 2014
    Not necessarily. As someone pointed out earlier in this discussion, many Chinese workers received impressive educations in the US and at prestigious universities all over the world. As such, these potential employees possess insights into western and Chinese culture that would be unique and invaluable to Apple. It was my privilege to serve as an assistant to such a grad student in the field of Botany in the late 80's. He was a wonderful person and surely a brilliant asset to whatever institution or company he ended up working at.

    If Apple has found a way to utilize these brilliant and educated people while somehow safeguarding any of the products produced out of this association, it could be great for Apple. And not just because of a wage disparity.

    But as I expressed in my previous post in this thread, I am very fuzzy on how Apple will accomplish this given that the Chinese market and their government is growing more insular and not less so, possibly in reaction to new rhetoric from the US government.

    To me...a person who is totally not a business person at this point in my life, I would think the time is more ripe to invest the R&D capital into other regions. Again, what do I know? I find it all fascinating and I would love to read an interview with Tim about China. But I doubt he would reveal much.
  19. cube macrumors G5

    May 10, 2004
    I did not say in China people have not been for decades fore into hard science than in the US. I am saying there are other places with talent but Apple does not go there.

    This is Apple:


    Excepting minor acquisitions or things like that.
  20. tzm41 macrumors regular


    Jul 11, 2014
    Boston, USA
    Nothing surprising. Going after talents is what big companies would do. There are not many places with more college graduates than China.
  21. GrumpyMom Suspended


    Sep 11, 2014
    I know and I wasn't absolutely refuting what you said. By saying "not necessarily" I left room to acknowledge that wages were a factor. But I wanted to open the discussion to consider other possible benefits to Apple's decision.

    Like anyone else here, my knee jerk cynicsm leads me to the same negative reactions that so many people voice on this forum. It would be so easy to add my voice to the chorus of uncompromising criticism, because in the mornings, I really am grumpy.

    But when I take in all of the other news posted on this site and elsewhere, my commitment to logic and reason compel me to consider all of the factors and open my mind to the discussion of how all the seemingly disparate elements could come together to form the basis of decisions like this and make it mean some kind of sense. I don't want to become either a cheerleader or a basher. I just want to learn. This is a free education for me, meeting up with people from amazing backgrounds and careers and education. It's a privilege to chat with you all and I always try to treat it as such.

    Tim Cook is not a stupid man. Apple is enjoying considerable financial success under his lead. It is not unquestionable success, however. We could go back and forth all day on this forum, and some people do, as to whether the reported successes Apple is enjoying will contribute to its long term growth and stability, or if it will end up eroding key areas that will eventually undermine the company in years to come.
  22. weup togo macrumors regular

    May 6, 2016
    Exactly. SJ was passionate about all principal design and engineering happening in Cupertino. For a long time, the only exceptions were for small acquisitions which were allowed to remain in place (Motion in Santa Monica, iWork from Pittsburgh and Seattle) and a small group in France because Bertrand.

    Tim is taking engineering in a completely different direction than Apple has ever gone before. History will judge the effects.
  23. HiRez macrumors 603


    Jan 6, 2004
    Western US
    How does this address their thirst for low-cost phones?
  24. macs4nw macrumors 601


    Lowering corporate tax rates, what Trump has said he would do, could be a big incentive to multinationals, not just Apple, to repatriate all those billions held offshore, so more R&D can happen here.

    In this particular instance, I suspect Apple, worried about losing ground in China, hopes to boost their marketshare through local R&D, by spending some of that foreign-held capital while things get sorted out here with the Trump administration's tax plans. The potential gains (or losses) in China are too great to put local R&D plans on hold.
  25. cube macrumors G5

    May 10, 2004
    Apple is not worried about losing ground in the EU with their tax games.

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