Apple's First China Research Center Will Develop Hardware, Landlord Says
September 29 2016 - 8:30AM
Dow Jones News
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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