Apple to boost China investments as demand slows
Apple`s announcement came after the head of China`s industry and technology regulator in May told Cook he hoped Apple could deepen its cooperation with the country in research and development and stressed information security.
Apple Inc will boost its investment in China, one of its largest but increasingly challenging markets, and build its first Asia-Pacific research and development centre in the country, Chief Executive Tim Cook said on Tuesday.
Cook made the pledge during a trip to China, at least his second in four months, as demand for Apple`s iPhones has plummeted in the world`s second-largest economy and the government remains wary about foreign technology.
Apple`s new research and development centre will be built by the end of the year, Cook told Vice Premier Zhang Gaoli, one of China`s most senior officials, according to CCTV, the official Chinese state broadcaster.
The centre will unite Apple`s engineering and operations teams in China and is also intended to deepen the company`s ties to partners and universities, it said in a statement.
Apple`s announcement came after the head of China`s industry and technology regulator in May told Cook he hoped Apple could deepen its cooperation with the country in research and development and stressed information security.
Sales in Greater China, once touted as Apple`s next growth engine, decreased by one-third in its fiscal third quarter, after having more than doubled a year earlier. The results did not include inventory drawdowns as retailers sold phones in stock faster than new supply coming from Apple, meaning that demand was not as weak as it seemed.
China`s slowing economy is stocking concerns about Apple`s prospects there. The company`s online stores for iBooks and movies closed in the country after Beijing in March imposed strict curbs on online publishing, particularly for foreign firms.
Apple has lost intellectual property battles in China and faces anti-U.S. sentiment from consumers there.
Before Cook`s charm offensive in Beijing in May, Apple announced a $1 billion deal with ride-hailing app Didi Chuxing, a move many experts saw as an attempt to curry favour with Beijing.
Other technology firms, including Microsoft Corp and Qualcomm Inc , have pledged investments in China, often with mixed results.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
01:40 PM IST