Apple has opened a huge new research lab in Shenzhen, China. The institute was first announced in March, but South China Morning Post We are pleased to report that it has started operation this week. Here’s what Apple has planned for this facility and how it relates to poor iPhone sales.
New facility aims to strengthen Apple’s long-term prospects
The iPhone’s foothold in China has declined recently, with Apple significantly losing market share while competitors such as Huawei have grown.
In that context, Apple’s new 215,000 square foot facility reportedly has two purposes.
- It’s a place to increase “testing and research capabilities” for major products like the iPhone.
- It also exists to “strengthen collaboration with local suppliers.”
Iris Deng writes: South China Morning Post:
The facility…will eventually employ more than 1,000 people domestically and internationally and will be the company’s “largest” laboratory outside the United States.
Reasons why iPhone is struggling in China
Speculation about Apple’s struggles in China has identified a variety of potential causes. AI is a key area, and the hope is that Apple Intelligence will ultimately help the company get back on track.
Other possible reasons include the popularity of foldable smartphones in China, which Apple is working on, and a growing trend among Chinese customers to support local smartphone manufacturers.
Apple’s new facility is a way to demonstrate the company’s long-term commitment to the region. Additionally, anything you can do to strengthen relationships with local suppliers will ultimately be a plus.
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