Apple Chief Executive Tim Cook said on Tuesday, August 16, that the company plans to boost its investment in China and build its first Asia-Pacific research and development center in the country.
According to CNBC, China is one of Apple's largest but increasingly challenging markets. In order to survive a tough market, as it steps up mainland investments, Apple has decided to build this new research center in China by the end of the year.
Cook had its second trip to China in four months and made the pledge during his trip. Apple needs to pay increasing attention to China as the Chinese government remains wary about foreign technology and demand for Apple's iPhones has dropped in the world's second-largest economy.
Apple's Reasons To Build R&D Center In China
Citing a statement by the official Chinese state broadcaster, Reuters reports that the Apple will build its first research and development center in the country. Stating that the center will be built by the end of 2016, Apple CEO Tim Cook reportedly made the commitment to Chinese Vice Premier Zhang Gaoli, one of China's most senior officials.
In May, the head of China's industry and technology regulator told Cook that hopes the American tech giant could deepen its cooperation with China in information security and in research and development fields. The pledge from the Apple CEO answers the invitation of the Chinese authorities.
According to 9To5Mac, Apple likely has two main reasons for opening its first R&D in China. First, Apple has established several R&D centers in a number of locations around the world already, including Sweden, Israel, France, Japan and the UK. The reason for spreading its research and development centers worldwide is that not all the research staff is willing to relocate in the U.S.
The second reason might be the fact that Apple needs to protect its interests in its second-largest market and for this the American company needs to establish closer ties with Chinese authorities. China has in the past banned government purchases of Apple products as it questioned the security of iPhones.
Historically, Apple does not have a running good relationship with the Chinese government. More recently, Chinese authorities have announced that Apple will be subjected to greater security scrutiny. A patent office in Beijing has ruled that the iPhone 6 is a copy of a Chinese smartphone and Apple's iTune Movies and iBook services were shut down by a Chinese government agency.