Apple is establishing another R&D center in China with Shenzhen being the location. Shenzhen is the home of the company’s mobile competitors Huawei and ZTE.
This comes as Apple’s finances have benefited greatly from the performance of its iPhone in the region in 2015, but have now started to lose steam. It was during an earnings call regarding the Q2 2015 performance that CEO Tim Cook said, “I’ve never seen as many people coming into the middle class as they are in China, and that’s the bulk of our sales, and we’re really proud and continue to invest in the country.”
The following year Apple announced an R&D center for Beijing, invested $1 billion in Didi Chuxing, and Apple getting a position on Didi Chuxing’s board. To celebrate the big step for Apple in the country, Tim Cook made the trip to Shenzhen earlier this week.
By having more of a presence in China, Apple could rejuvenate interest of the iPhone in the market while also picking up other opportunities.