Apple to Expand Research and Development Facilities in China

[MacRumors]

Apple is planning to expand its applied research and development labs in China, the company today announced.

In a statement shared with the South China Morning Post, Apple said that it plans to expand its research center in Shanghai "to support all of its product lines," as well as open a new lab in Shenzhen later in 2024 that will work on testing and research of major products including the iPhone, iPad, and Vision Pro headset. The company added that the new facility in Shenzhen will strengthen its collaboration with local suppliers and support local employees.

Apple's vice-president and managing director of Greater China, Isabel Ge Mahe, said that the company is proud to cultivate deeper ties in China and expand its presence in the country. Apple has already invested $139.2 million into its Shanghai research center, she added. Last week, Apple announced plans to open a new Apple Store in Shanghai's Jing'an district on March 21.

Article Link: Apple to Expand Research and Development Facilities in China

 

[attohs]

Wasn’t Apple recently tightening its belt and ending major R&D projects?

 

[xmach]

What exactly does 'applied research' mean?

In any event, it sounds as if this might the price Apple is being forced to pay for continued market access in China, given that the government there is heavily promoting Huawei and increasingly strongly discouraging iPhone usage and ownership.

 

[Darren.h]

Why? I thought Apple was trying to move iPhone assembly out of china.

Our own government generals sounded alarms saying China is getting ready for war with the USA.

Not to mention they steal intellectual property.

Good thing I am using a pc with Windows more than Mac.

If China declares war almost all of Apples manufacturing will be stuck in China.

Good thing they stayed out of Russia.

 

[coffeemilktea]

I guess without the Apple Car to suck up resources, they need somewhere else to put their R&D money? Though I really thought Apple had plans to expand beyond China. 🤔

 

[ThailandToo]

This seems like a bad calculation from Apple. These decisions have cost Apple so much IP loss in the past to hand them the platter seems stupid.

 

[DelayedGratificationGene]

9to5 Mac makes it a point that Apple has research facilities all over the world including Japan, France, Israel, UK Sweden and China etc

 

[Mr_Risin_Mojo]

Money makes the go round...

 

[DEMinSoCAL]

Just a reminder to all that this article is not in the MacRumors Political forum so keep your posts on subject else bad things will happen. (it should be moved to political IMO)

 

[kaycrystal626]

What a great news!

 

[gknewell]

This is a terrible idea. Getting increasingly tangled up with China right now is absolutely absurd.

 

[cawgijoe]

Apple is stuck between a rock and a hard place...they have been moving manufacturing out of China so as not to rely heavily on one location, yet they need to increase sales in China to boost sales and revenue. Doing this appeases the government so they can continue to do so. Crazy world.

 

[trusso]

I have nothing against the Chinese people - just the Chinese government - but Tim Cook needs to get some fresh air or step down. I don’t know what he’s smoking with a decision like this.

 

[SpanishAppleNerd]

What exactly does 'applied research' mean?

In any event, it sounds as if this might the price Apple is being forced to pay for continued market access in China, given that the government there is heavily promoting Huawei and increasingly strongly discouraging iPhone usage and ownership.

exactly that. Basic research is to understand phenomena without a specific application, and applied research is the application of said basic research with a specific goal in mind

 

[spinedoc77]

It's interesting to read this, then consolidate it with China's push to replace western tech companies with their own homegrown companies and technology. China already banned Apple phones for government officials and a lot of tech like PCs are being forcefully replaced by state owned tech manufacturers such as Tongfang. Previous stalwarts of China tech like Hewlett Packard, Salesforce, Oracle, and Microsoft are being pushed out and replaced. It makes you wonder what kind of behind the scenes deals Apple is making to stay friends with China.

 

[oofio2461]

Doesn't the Chinese Government hate Apple? With the tensions rising as well, this is not a smart move by Tim.

 

[NT1440]

It's interesting to read this, then consolidate it with China's push to replace western tech companies with their own homegrown companies and technology. China already banned Apple phones for government officials and a lot of tech like PCs are being forcefully replaced by state owned tech manufacturers such as Tongfang. Previous stalwarts of China tech like Hewlett Packard, Salesforce, Oracle, and Microsoft are being pushed out and replaced. It makes you wonder what kind of behind the scenes deals Apple is making to stay friends with China.

None of this has anything to do with mass manufacturing. Many countries, in avoiding just becoming an assembly sweat shop for wealthy nations, include provisions that require companies to have other operations domestically aside from just assembly plants.

Also, China is the world leader in PHD and engineering graduates and tech patents. You’d be stupid not to have access to that talent pool.

 

[longofest]

I don't understand a move like this to invest more in mainland China right now. Anything based in mainland china is ripe for having its IP lifted and brought into corporations that are owned by the Chinese government.

That's before you take into account all of the political tensions including the rising prospect of the Chinese going to war with Taiwan, which is where Apple's main manufacturing partner TSMC is based?

Head scratcher for me for sure.

 

[magamo]

It's sad news like this is automatically political around here.

 

[VulchR]

...they have been moving manufacturing out of China so as not to rely heavily on one location, yet they need to increase sales in China to boost sales and revenue...

Apple are quite profitable as it is. They don't 'need' to do anything. There are plenty of research institutions in North America, Europe, and democratic parts of Asia. And if this sounds political, may I remind people that Apple has always marketed itself as pro-freedom.

Image: source

 

[JordanCautious]

Definitely not a good idea considering the US Government's current relationship with China

 

[timber]

Doesn't seem like a great plan.

 

[spinedoc77]

Apple are quite profitable as it is. They don't 'need' to do anything. There are plenty of research institutions in North America, Europe, and democratic parts of Asia. And if this sounds political, may I remind people that Apple has always marketed itself as pro-freedom.

Image: source

Seems to me like Apple has ironically switched sides a long time ago, they are now that nameless Orwellian face on the screen getting a hammer thrown at it, cue all the Apple loyal marching in step. Although I'm not a conspiracy theorist and wouldn't say I'm worried that Apple is selling out our privacy or even security behind the scenes to keep China's business or anything.

 

[ksec]

Why? I thought Apple was trying to move iPhone assembly out of china.

That was what the media and Apple's PR wanted you to believe. You could argue all the assembly in India was not moving out of China but simply because Apple needed the India market next. And if anything Apple has doubled down on Chinese supply Chain.

But those moving out of China story was good enough for all the Apple media from YouTube, IG, MSM to Macrumors and 9to5 readers to believe their favourite company is doing the right thing.

 

[aidler]

Absolutely nothing can go wrong here 😂.