Apple chief back in Beijing to announce China plans and lift tech firm’s visibility amid sales fall

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Apple chief Tim Cook says the firm will set up a research and development facility in China by the end of the year. Photo: Reuters

Published: 12:03am, 17 Aug 2016Updated: 12:03am, 17 Aug 2016

Apple chief executive Tim Cook is in Beijing again – his second trip to the city in three months to boost visibility for the technology giant amid shrinking iPhone sales in China’s smartphone market.

Cook on Tuesday met with China’s vice-premier Zhang Gaoli, who said that China wants to let companies from the United States, including Apple, actively carry out business operations in the country and increase investment in China, according to news agency Xinhua.

Zhang added that these companies will positively contribute to the country’s economic and social development.

Cook also said Apple plans to increase its investment in China, establishing the company’s first Asia-Pacific research and development centre in the country before the end of the year.

The market in China has switched from new users to those wishing to upgrade their phones. Photo: Reuterswanted to buy Workers prepare for the opening of an Apple store in Hangzhou, Zhejiang province, in this January 23, 2015 file photo. Apple Inc is steering clear of Chinese rival Xiaomi Inc's low-price online strategy, ramping up store openings in China to harness its premium edge and fend off the fast-growing No.3 global smartphone maker. The U.S. firm's quarterly results smashed Wall Street expectations with record iPhone sales in the holiday season and a 70 percent rise in China, powering the company to the largest profit in corporate history. REUTERS/Chance Chan/Files (CHINA - Tags: BUSINESS TELECOMS)

Cook’s visit comes as Apple slid to fifth place in terms of Chinese smartphone shipments earlier this year. Apple’s market share was 10.8 per cent in May from 12 per cent in the same period last year, according to statistics by Counterpoint Research.

In its third quarter report, Apple posted US$8.85 billion in revenue for its greater China market, a 33 per cent revenue decline compared to the same time last year, and a 29 per cent dip compared to the previous quarter. The company’s performance in the greater China market shrank the most compared to its other markets – Japan was the only segment which reported an uptick of 23 per cent in revenue year on year.