Hyped Apple R&D centre goes to China

August 18, 2016 | 15:14

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Apple Inc. will increase its investment in China, one of its most important but increasingly challenging markets, to build its first Asia-Pacific research and development (R&D) centre in the country, disclosed chief executive Tim Cook on August 16 to newswire Asian Nikkei Review.

Cook made the pledge during his trip to China, at least his second in four months, as demand for Apple’s iPhones has plummeted in the world’s second-largest economy and the government remains wary of foreign technology.

Official Chinese state broadcaster CCTV stated that Cook told Vice Premier Zhang Gaoli, one of China’s most senior officials, that Apple’s new R&D centre will be built by the end of this year.

Earlier in May, Zhang Gaoli said that he hoped Apple could deepen its R&D co-operation with the country and stressed the importance of information security.

Along with the $1 billion R&D centre, in May, Apple announced a $1 billion deal with ride-hailing app Didi Chuxing. The move was considered an attempt to curry favour with Beijing.

Previously, Huynh Duc Tho, Chairman of the Danang People’s Committee stated that Apple visited Vietnam’s Danang in March, along with other cities, namely Hanoi and Ho Chi Minh City, to find investment opportunities. The investor was mulling over a suitable investment location and would make the final decision at a working session with Danang’s leaders in August.

However, as of now, the city has yet to receive feedback from Apple.