So, our favorite Apple Company following its success making iPhones in southern China, has reaffirmed its interest in the China by announcing it’ll open a research and development centre in Shenzhen to tap into the city’s talent pool. Is this a surprise, not rally. Shenzhen is the Silicon city in china and fast attracting lots of digital talents in china and across the globe. Remember, its in the same city that Huawei has its Head Quarters, and similarly same where Apple has its key manufacturing Hub, run under Foxxcom.
There are already over 100,000 people in Shenzhen focusing on developing world class software. For Apple, the Chinese-language represents a key barrier for it to be well integrated into China. “Apple will seize this opportunity to expand our investments in research and development in China. I’m happy to announce Apple’s plan to build an R&D centre in Shenzhen.” Said Cook in a recent interview.
Cook’s comments follows an announcement two weeks ago by the Zhongguancun Science Park Administrative Authority in Beijing, about Apple building a US$44.65 million research and development centre in the city. As Apple and many more tech giants look to the East to continue their growth plot, China is a key strategic and commercial “bank” that having a physical presence in can help build trust and key imprints for localization and monetization.
While Apple’s plans for its Shenzhen R&D centre seem to be focused on software, its Beijing centre will focus on developing computer hardware and software, audio and video equipment, consumer electronics, telecommunications products and other advanced technologies, according to the Zhongguancun Science Park.
The R&D centre announcements also come on the back of Tim Cook’s pledge to make more investments in China during a meeting with China vice premier Zhang Gaoli earlier in August 2016. In May, Apple announced a US$1 billion in Chinese ride-hailing service Didi Chuxing. Also, it had taken a seat on Didi’s board of directors, according to report by The Information, a San Francisco-based online publication about the technology industry, citing regulatory filings.
As Chinese digitaris become more and more reliant On digital products and services, this move by Cook presents a clear opportunity for more innovation. As Samsung continues to bleed with the latest flop in R&D tests for their Note 7, this announcement could lead to a huge switch of interest from those Samsung fans in China to the Apple brand, a process that will surely be hard for Samsung to win back. The tech space is moving pretty fast now, and any goof can be irrevocably fatal.