Oct 14, 2016
News of Shenzhen centre comes as US tech group moves to foster closer ties
News of the centre, which will be Apple’s second in China after a new facility in Beijing, comes as the government is pressing foreign technology groups to carry out more high-end work on the mainland, to boost the local industry.
In a statement, Apple said: “The Shenzhen centre, along with the Beijing centre, is also aimed at strengthening relationships with local partners and universities as we work to support talent development across the country.”
For the US technology company, a closer relationship with the Chinese authorities has been a priority following a number of setbacks this year. These have ranged from acopyright infringement lawsuit in which a Chinese company alleged it owned the iPhone trademark, to a block on Apple’s iTunes video service, which since appears to have been relaxed, allowing iTunes to work intermittently.
Apple’s iPhone has been losing market shareto handsets made by local rivals such as Huawei, Vivo and Oppo. In the second quarter, Oppo topped the market share rankings, while Apple languished in fifth place, according to Canalys data.
Analysts suggested that Apple’s new R&D centre represents Mr Cook’s latest attempt to gain favour with Beijing, following its $1bn investment last May in Didi Chuxing, the Chinese car hailing company.
Ge Jia, an influential technology blogger, said it marked a shift in Apple’s approach in China as it faces rising nationalism and high-quality local competition.
“It’s time for Apple to cast aside their pride,” the blogger wrote on Wednesday. “Their previous strategy of only selling devices to China without leaving anything behind is not working any more and they are starting their process of localisation in China through this.”
Mr Cook announced plans for the lab in talks with senior city officials, the Shenzhen Economic Daily reported. Mr Cook, who was attending an innovation event in Shenzhen, unveiled plans for the Beijing facility in August, during another visit, and promised to invest more in China.
Fu Liang, an independent telecom analyst, said the research centre would also help Apple zero in on consumer preferences that might make it more attuned to the local market.
“[The R&D Centre] is much more than a friendly gesture to China” she said. “The Chinese market has its unique characteristics and demands, which require Apple to have customised technical variations for its customers.”
Copyright The Financial Times Limited 2016. All rights reserved. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
Source: FINANCIAL TIMES