Apple gets ‘most extensive’ lab in China amid stiff competition - report
Apple has opened its largest research lab in Shenzhen, China, covering 20,000 square meters, to enhance R&D for products like the iPhone and iPad amid rising competition from local smartphone makers. The facility aims to employ over 1,000 talents and is part of Apple's strategy to strengthen its presence in the Greater Bay Area. Analysts express concerns about Apple's challenges in China due to competition from Huawei and strict AI regulations. Despite these challenges, Apple shares have risen over 18% this year, although they opened lower on Friday.
Apple (NASDAQ:AAPL) inaugurated its most extensive research laboratory at the Shenzhen Park in Hetao amid increasing competition from Chinese smartphone makers, according to a South China Morning Post report on Friday.
The facility that started operations on Thursday spans across 20,000 square meters and will become the iPhone maker's research and development hub in the Greater Bay Area—also known as the Guangdong-Hong Kong-Macao Greater Bay Area.
The new facility is set to enhance Apple's (AAPL) research and testing capabilities for key products like the iPhone, iPad, and Vision Pro mixed-reality headset.
It expects to eventually employ over 1000 domestic and international talents and will become the tech giant's (AAPL) “most extensive” lab outside the U.S., the report said.
Earlier in March, Apple (AAPL) said that it has set up research centers in Beijing, Shanghai, Suzhou, and Shenzhen and doubled its development team in the past five years.
This strategic move comes as Apple (AAPL) faces a challenging landscape in the world's largest smartphone market, where companies like Huawei and other domestic players are tightening their grip.
Analysts have also expressed concerns regarding Apple’s growing competition in China. Seeking Alpha analyst Dilantha De Silva believes that the company faces significant challenges in the country, with mounting competition from Huawei and strict AI regulations impacting market share and sales.
Apple (AAPL) shares opened lower on Friday. The stock has gained more than 18% so far this year.