“He is trying to show he is learning and appreciates the local culture”, said Kitty Fok, China research director for market research firm IDC.
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Demand for Apple’s iPhones has plummeted in China, and the government maintains a wary attitude towards foreign technology.
Cook had its second trip to China in four months and made the pledge during his trip. He added: “We look forward to expanding our operations in China with a new Research and Development center as we continue to grow our talented team here”.
The company refused to reveal any further information about the R&D center including its location and the amount of capital it plans to invest. In January, Foxconn announced plans to start construction of a smart factory pilot project in Chongqing, Xinhua reported on January 21.
According to CNBC, China is one of Apple’s largest but increasingly challenging markets.
The company’s sales in the China region fell by a third last quarter, but Cook has continued to talk up the long-term prospects there.
Apple has also lost intellectual property battles and faced anti-US sentiment from consumers. Its online movies and books services were shut down in China in April, with authorities telling the company it lacked the needed licenses, according to people familiar with the matter. Apple will actively participate in China’s “Internet Plus” strategy and smarter manufacturing, Cook noted on Tuesday. The firm rejected the reports soon afterwards.
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Meanwhile, Apple is contending with regulatory challenges in China. The company has already set up its R&D centers in a number of countries across the world, including the UK, France, Sweden, Israel, and Japan. So the size of the R&D staff in China would likely be minuscule, and potentially a means to satisfy the Chinese government. The teams there aren’t that significant.
