BEIJING—Apple Inc.'s first research center in China will be a $45 million facility located in the capital to develop hardware, the site's landlord said, announcing some of the first details of the project.

The new center will focus on developing advanced technologies, including computer hardware and communications, audio and video equipment and other devices, state-owned Zhongguancun Science Park Administrative Committee said in a social media post Thursday. It said the center will have 500 employees.

Apple declined to comment Thursday. Chief Executive Tim Cook said during a meeting last month with a senior Chinese leader that Apple planned to set up its first research center in China. No details were given by Mr. Cook, who promised to increase investment in China.

His pledge came amid regulatory difficulties and rising competition for the company. Apple's challenges in China in recent months include the shutdown of its online book and movie services and stricter regulations over data storage. Meanwhile, the rise of local rivals has slowed sales in what was once Apple's fastest-growing market.

The iPhone 7, which launched this month, has sold well in China, with some colors selling out of stock, as in other markets.

The new research center will be located in a new science park in the city's Wangjing area, according to the Zhongguancun committee.

The committee said Apple's decision to open the center will help boost to the Chinese economy, creating new employment opportunities, and Apple's competition with local phone makers would inspire designs suited to the China market.

Apple said last month that the research center will focus on developing new products and services and "strengthening relationships with local partners and universities."

Most of Apple's iPhones are manufactured in China. But Chinese leaders are seeking to upgrade the economy from low-level manufacturing and have been pushing development of advanced research and internet technologies.

Yang Jie and Eva Dou

 

(END) Dow Jones Newswires

September 29, 2016 08:15 ET (12:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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