Apple Inc (NASDAQ:AAPL) China Is About To Be Born In Shenzhen

After its $45 million expenditure in a research and development facility in Beijing Apple Inc (NASDAQ:AAPL) is now seeking for an entry in the city of Shenzhen in southern China. Very soon, Apple China will be born given the company’s persuasion of setting up a second facility in the Middle Kingdom. Despite the competition, the tech giant is seeking to spur growth in the world’s second-largest economy.

The plan by Apple was made public by the company’s CEO Tim Cook during a nation-wide innovation event. He also met with senior officials from the southern Chinese city. For the longest time possible, Shenzhen has been on record for its knockoff iPhones and iPads. However, it has now taken a different route becoming a force of innovation.

Apple China: The Company’s Integration into the Chinese business

Along with the Beijing Center, Shenzhen center is expected to strengthen relationships with the local partners, which will in return heighten the duo’s business. Apple China will perhaps attract talented software developers in the city according to the Shenzhen Economic Daily, which was citing Cook. Thus, this makes it an important center for manufacturing Apple products.


In his emailed comments, Cupertino-based Apple spokesman Josh Rosenstock, stated, “We are excited to be opening a new Research and Development center here next year so our engineering team can work even more closely and collaboratively with our manufacturing partners.”

Apple’s target region is a hub of technological resources

Cooke views Shenzhen as a manufacturing powerhouse. Apple’s aim is to support the talent development across the country while at the same time tapping into skill level of Shenzhen’s factories that is slowly leading other places in the world. Being the burgeoning hub that it is, some of China’s largest electronics manufacturers have found refuge in it.

Apple China would also be seeking to revive its revenue from the Greater China region, which was at 33% in the last quarter unlike what it was in 2015. The decline was occasioned by decreased interest in the iPhone as the company faced tight competition from Huawei and ZTE. Apple China will however, have to encounter the two competitors who are also headquartered in Shenzhen alongside Chinese internet giant Tencent and dronemaker DJI.

But even as this rolled out, Apple’s shares closed at $117.34, a rise of $1.04 or 0.89%.

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