Why did Apple announce that it will build another R&D center in China?

On March 17, Apple China’s official website reported that Apple will open R&D centers in Shanghai and Suzhou. These are the two new R&D centers Apple has established in China, following Beijing and Shenzhen. Currently, Apple has committed to investing more than 3.5 billion yuan in China's research and development centers.

Apple said its R&D center in China aims to cultivate technical experts in the supply chain, as well as graduates from universities including Peking University, Tsinghua University and Shanghai Jiao Tong University. As part of Apple's continued development and investment in China, Apple said it has launched a series of collaborative projects with schools, including internship programs to help develop the next generation of entrepreneurs.

“Through our plans to expand our R&D centers in China, we look forward to collaborating with more local partners and academic institutions.” Dan Riccio, Apple’s senior vice president of hardware engineering, said, “China has outstanding talents. With a positive entrepreneurial spirit, we are honored to work with developers and suppliers here to allow our business to thrive in this market."

In August 2016, Apple CEO Tim Cook said. During his visit to China, he promised to increase investment in China and plans to establish the first independently operated R&D center in China by the end of 2016. In October, the Beijing Zhongguancun Park Management Committee disclosed that Apple R&D (Beijing) Co., Ltd. was established in Zhongguancun Chaoyang Park with a registered capital of 100 million yuan, a total investment of 300 million yuan, and 500 employees.

At the Shenzhen “Entrepreneurship and Entrepreneurship Week” in mid-October, Cook announced that Apple would establish a R&D center in Shenzhen, which would be divided into five major areas: supply chain management, operations, R&D, and online and offline retail. sector, involving industries such as manufacturing and App application development.

“California R&D, Made in China” has been Apple’s past style, and it is cautious about setting up R&D centers in foreign countries. However, Apple's attitude has changed in the past two years. It has established R&D centers in overseas markets such as Yokohama, Japan, Israel, and Cambridge, UK. It also plans to establish new R&D centers in India, Canada, Indonesia, Vietnam and other countries. Apple said this is mainly to make better use of local advantageous resources.

Samsung, Apple’s biggest rival, has already established a presence in China. Data shows that Samsung currently has seven pillars in China, with 14 production bases, 10 R&D bases, 11 sales bases, and 4,447 service centers. It has approximately 60,000 employees, accounting for 21% of its global employees. Apple operates 22 offices and 46 retail stores in Greater China, with more than 12,000 direct employees.