Tim Cook Announces R&D Center to Be Built in China 'By the End of the Year'

[MacRumors]

Apple is planning an all-new research and development center in China, attempting to boost its presence and market share in the country following multiple reports of the iPhone's dwindling returns as users flock towards low-cost alternatives. The R&D center, said "to be built by the end of the year," will mark Apple's first location of its kind in the Asia-Pacific region (via Reuters).

The announcement comes from Apple CEO Tim Cook, on a visit in China this week, who spoke with Vice Premier Zhang Gaoli on Tuesday and detailed the company's plans for the center. Those details weren't specifically disclosed to the public, so it's still unclear where the new R&D center will be located, or how many employees it might house.

Apple's new research and development center will be built by the end of the year, Cook told Vice Premier Zhang Gaoli, one of China's most senior officials, according to the official Chinese state broadcaster.

The pledge comes after the head of China's industry and technology regulator in May told Cook he hoped Apple could deepen its cooperation with the country in research and development and stressed information security.

Cook's August trip marks his second visit to China this year, following a tour of Beijing in May where he met with App Store developers and Didi Chuxing president Jean Liu. Although once Apple's second largest market in the world, the company announced during last month's earnings report that its revenue in China dropped 33 percent year-over-year, ultimately allowing Europe to overtake China as its second biggest market, following the United States.

Concern about Apple's future in China stems from the country's heavy focus on potentially invasive foreign products and services, leading to events like the closure of the iTunes and iBooks store earlier in the spring, due to the launch of a controversial dystopian film. Apple has faced lawsuits due to similar occurrences as well, making it hard for the company to focus solely on helping the iPhone gain traction against China's plentiful low-cost smartphone options.

Article Link: Tim Cook Announces R&D Center to Be Built in China 'By the End of the Year'

 

[BeefCake 15]

Faster product leaks!!

 

[zhang96]

Great! More leaks!

 

[SuprUsrStan]

This is their way of doubling down on security huh.

 

[Juicy Box]

As an consumer outside of China, I do not see this as a good thing.

Unless Apple starts a clothing line.

 

[gondor5]

Some companies never learn. Perhaps Apple should ask Cisco, IBM and many others how their ventures in China played out. Huawei didn't even bother to take Cisco copyright comments out of the Cisco code before they used it.

 

[i5pro]

More state sponsored hacking!

 

[Bubba Satori]

As an consumer outside of China, I do not see this as a good thing.

Unless Apple starts a clothing line.

Casual dance wear?

 

[S.B.G]

I can only imagine what kind of product leaks will emerge from this new facility, that is unless its actually controlled by Apple employees, unlike Foxconn.

 

[DTphonehome]

I believe what he actually said was:
打倒资本主义！中国万岁！

 

[Three141]

Is this R&D genuine or is it a masked bribe?
What I'm not understanding here is "iPhone's dwindling returns as users flock towards low-cost alternatives." surely they do not need a R&D department to tell them cheaper bang for buck product is what the consumer over there is demanding?

 

[Arcus]

Jumping the shark. What a shame to see what is happening to Apple.

 

[McTaste]

They build the phones and other hardware, why not have them design it too? Then we fire all these silly American workers.

 

[yaxomoxay]

At least the Design is still in California...

 

[Rogifan]

Wasn't Cook just in China? Is he going there every month now?

 

[lympero]

Good. Maybe he announced the new MBP as well?

 

[CreatorCode]

Inevitable. Apple has too much of its money overseas, and doesn't want to pay the taxes to bring it into the USA. The only way to deal with the problem is to move its R&D to where its money is.

As far as avoiding leaks...my guess is the Chinese staff won't be told what they're working on or why. Design an IC with these specs, design a sensor with this range, lay out this board with these dimensions...don't ask what it goes into, or why. The less they know, the less they can leak.

 

[d0minick]

with all the corporate sabotage and stealing, why build r&d there? honest question.

 

[ElZeus]

The beginning of the end.

 

[CarpalMac]

Took over 6months for my patio to be done.

 

[LordQ]

For a moment I read "Tim Cook renounces" - All this biased hate towards him is starting to get me D:

 

[netdoc66]

I'm over Apple.

 

[x0vash0x]

The Oppo R9 is just an iPhone clone. So, it's really, this isn't going to increase copy-cat companies.

with all the corporate sabotage and stealing, why build r&d there? honest question.

Because, Chinese will do it for half the price of an American engineer. Same thing for Indians. Cheaper product development. But, I think everyone here is missing the point.

1. This is a huge win for China as it's exactly how China wants to be viewed. They want to be high-technology. Having Apple invest in China is a huge image win for China.
2. This is a huge deal for Apple, because they have to appease the Chinese government. But, more importantly, it's a sign of good faith that Apple will play by the rules. Apple wants iTunes stores back open in China. After an R&D center will probably come a data center solely for Chinese market.

 

[citysnaps]

Excellent move. Makes a lot of sense. A win for everybody.

 

[kdarling]

China and India are playing Cook like a violin, getting him to continue to build job (and tech info) sources in their countries, letting him hope that they'll grant Apple some meaningful favors in return.