Apple CEO Tim Cook said on Wednesday that the company plans to open a research and development center in Shenzen, South China. The company spent $45 million on its first research lab in Beijing, China.
On Tuesday, Tim Cook paid a surprise visit to Shenzen and celebrated the new of opening its second lab in China. As per local newspaper Economic daily, CEO Cook admired Shenzen as a manufacturing source of power. His early visit to China, he said, "We realized the skill level of Shenzhen’s factories was gradually leading to other places in the world."
The Shenzen research center will permit the company's engineers to effort "even more closely and collaboratively" with manufacturing partners. Rosenstock said in the comments, "The Shenzhen center, along with the Beijing center, is also aimed at strengthening relationships with local partners and universities as we work to support talent development across the country."
Apple wishes to promote incorporates its company with Chinese companies to boost iPhone sales in the country. As compared to last quarter of 2015, Apple’s profits from China reduced 33% in the last quarter of 2016. It is the worst decline of Apple’s major operating market. Apple’s market went down due to decreased interest in the iPhone with local mobile markers such as ZTE and Huawei, both are competing Apple’s flagships. Both ZTE and Huawei are headquartered in Shenzen China, which means Apple will compete to its foe directly and it can easily hire talent from the city.