“Apple Inc. has revealed plans to set up two more research centers and boost investment in China, a pivotal market in which the iPhone has been rapidly elbowed aside by local rivals,” Yuan Gao reports for Bloomberg. “The announcement comes as Chief Executive Officer Tim Cook undertakes his latest trip to a country that ranks as Apple’s single biggest overseas market.”

“Apple said it plans to build new research facilities in the eastern Chinese cities of Shanghai and Suzhou, on top of centers already slated for Beijing and the southern city of Shenzhen. It also pledged to spend at least 3.5 billion yuan ($507 million) on research institutions,” Gao reports. “All four centers will open later this year, the company said in a statement on its Chinese website.”

“The announcement came a day before Cook is scheduled to address a high-profile economic forum in Beijing, where senior government officials will confer with the heads of some of the world’s biggest corporations, including Royal Dutch Shell Plc and Saudi Arabian Oil Co.,” Gao reports. “Foreign companies have a long-established tradition of building research bases in China to both signal their commitment to the country and curry favor with the government. ”

Read more in the full article here.

MacDailyNews Take: Players pay to play.

By the time Apple gets iTunes movies and iBooks Store sales turned back on in China, it’ll take 2,000 years to recoup their Chinese “investments.”

SEE ALSO:
Apple removes New York Times apps from App Store in China at behest of Chinese government – January 4, 2017
China dethrones U.S. to become the largest market in the world for iOS App Store revenue – October 20, 2016
Apple to set up second R&D center in China – October 12, 2016
Apple’s first R&D Center in China will develop hardware, employ 500 – September 29, 2016
Apple CEO Cook ‘pretty confident’ of soon resuming movie and book sales in China – May 3, 2016
Apple’s biggest China problem: iPhone’s strong encryption – May 2, 2016
The New Yorker: What Apple has to fear from China – April 30, 2016
Why Carl Icahn is wrong about Apple and China – April 29, 2016
Carl Icahn out of Apple over worries about China’s ‘dictatorship’ government – April 29, 2016
Apple stock falls as Carl Icahn dumps all of his shares – April 29, 2016
Carl Icahn dumps all of his Apple shares; stock drops – April 28, 2016
China could slam door on Apple, says top global risk expert – April 25, 2016
China’s increasing censorship hits Apple, but Apple might punch back – April 22, 2016
China shutters Apple’s online book and movie services – April 22, 2016