Apple has plans to build a research facility in Beijing, says Wall Street Journal. The facility will center on developing new components and such for computers and other devices. The Beijing-based facility is expected to have a staff of 500.
China has been an eventful market for Apple in the past few years for both good and bad. There was significant labor violation issue the company dealt with in 2015—something that tech companies such as mobile competitor Samsung have dealt with in the region.
Last year Apple generated strong sales thanks in part to its performance in China. This year saw the company invest $1 billon in ride-sharing giant in the region Didi Chuxing and have said that it looks forward to investing more in market. With the announcement of the R&D facility being built, it’s a wonder why Apple hasn’t done so years ago.
The step will allow for Apple to develop important hardware for products and get them out quickly when they it is time for those products to hit shelves. It also allows for Apple to keep things in-house and be directly responsible for whatever labor issues might arise.
The facility will be $45 million, significantly more than the investment the company is putting up for the Hyderbad facility it is building for similar purposes. In the case of the India facility there is also the advantage of getting around the India sourced materials requirement to sell in the country and building things in house.