Apple is to open a research lab in the southern Chinese city of Shenzhen, according to Tim Cook, its chief executive, as it seeks to boost sales in the country and improve ties with the authorities. Beijing has been encouraging foreign technology companies to carry out more high-end work on the mainland as part of efforts to revitalize local industry. It will be Apple's second facility in China. It already has a new research and development facility in Beijing. The two R&D centers were "aimed at strengthening relationships with local partners and universities as we work to support talent development across the country", Apple said in a statement. A closer relationship with the Chinese authorities has been a priority following setbacks for the US technology company this year. The iPhone has been losing market share to high-end handsets made by local competitors including Huawei, Vivo and Oppo, which topped the rankings in the second quarter, while Apple languished in fifth place, according to Canalys data. Analysts said the announcement of the R&D centre was Mr. Cook's latest attempt to gain favour with Beijing, following the US group's $1billion investment in Didi Chuxing, the Chinese car-hailing company, in May. Apple has had to change its approach in China as it faces rising nationalism and high-quality local competition, according to Ge Jia, a tech blogger, who wrote yesterday: "It's time for Apple to cast aside their pride." "Their previous strategy of only selling devices to China without leaving anything behind is not working any more and they are starting their process of localisation in China through the Shenzhen lab." Which of the following is true?
There is only one research facility in China. Apple has always been in good relationship with Chinese authorities. Huawei has ranked to No.1 in the second sales quarter. Apple is changing its strategy in order to boost sales.