Apple Set to Invest $500 Million On New Research Hubs in China As Sales Plummets
Apple is currently planning to gain access to local talent by developing new research and development centers worldwide. Apple just announced on its Chinese website that it will be building two new R&D centers in Shanghai and Suzhou.
This is going to be a significant investment as Apple plans to spend around $500 million. The tech giant has already announced research centers in Beijing and Shenzhen, therefore in total, there will be four centers in China. Apple also has teams in France, Israel, the U.K., Japan and Sweden.
Apple's first fiscal quarter, which ended Dec. 31, Apple's Greater China unit generated $16.2 billion in revenue, a 12% decline compared to the same period in 2015. The company has experienced similar declines in previous quarters. Apple's R&D investments in China is therefore likely to be as a result of an increased expectation for growth in the region.