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Tuesday, January 29, 2013, 12:46 am
Rumor: Apple Shanghai facility to be supply chain management center, not R&D center
A new rumor has it that the three-building facility Apple has registered in Pudong, Shanghai, will be dedicated to supply chain management, not research and development as was previously believed.A report from Chinese language tech site Tencent Tech (via investment news service BrightWire) claims that Apple has begun hiring high-end supply chain management experts in Pudong, with the aim of making the area a central hub to manage its southeast Asian supply partners. The publication reportedly got word from a member of Apple China's marketing department that the Shanghai facility was not being prepped for research and development duties.
Rumored Apple facility in Shanghai, China. | Source: CNET China
Other sources said previous indications that Apple intended the multi-building complex to be an R&D hub were based on flawed reports that CEO Tim Cook had promised to establish such a center in China during one of his previous visits to the country.
The future of Apple's Chinese operations has been a source of rumors for the past several months. Earlier accounts had the company establishing R&D and data centers in Beijing, but those soon gave way to claims that Pudong, Shanghai, would be the site of Apple's new facility.
Recently cited documentation from the Shanghai Municipal Administration for Industry and Commerce revealed that Pudong would be the location for some type of Chinese expansion on Apple's part, though the purpose of the space remains unknown.
Apple's products are designed in California but manufactured by the company's partners in China. Southeast Asia is also home to many of the companies that produce the components that go into Apple's best-selling devices, so locating a supply management center in the region could help the company exert greater control over its supply chain. Supply chain troubles have been a source of trouble for Apple of late, with iMac component issues beginning to impact sales and quarterly results.
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Previous Comments View All
I wonder what happens to all the opinions in the thread from 2 weeks ago. I presume Tim is still king of supply chain, and therefore have a though time thinking this rumor to be true.
Um this would be R@D for Apple. The very type of R@D they would want int China. R@D about the supply chain. "A chain about nine miles long" (see William Gibson) Those in power would want this too.
A new rumor has it that the three-building facility Apple has registered in Pudong, Shanghai, will be dedicated to supply chain management, not research and development as was previously believed.
It makes more sense. Too many companies have lost decades of R&D to China's "cooperative attitude". I can't see Apple making that same mistake.
A few days ago is was reported on AI as confirmed that this was going to be an R&D center.
http://appleinsider.com/articles/13/01/28/apple-shanghai-rd-center-confirmed-for-summer-2013
Now it is back to being a rumor again and that this is now going to be for Supply Chain Management. As far as I am concerned, until Apple says something this doesn't exist.
A bit of a shame if this is only about supply chain management.
One way for Apple to win over Chinese consumers more is to design a device that is more suited to the needs of the people in China.
A bit of a shame if this is only about supply chain management.
One way for Apple to win over Chinese consumers more is to design a device that is more suited to the needs of the people in China.
As opposed to the designs Apple do now that the Chinese people have problems with?
A bit of a shame if this is only about supply chain management.
One way for Apple to win over Chinese consumers more is to design a device that is more suited to the needs of the people in China.
Beijing has the highest wages of any region in China with an annual wage of roughly $9,000/year. Given this fact, basically you're saying Apple should make budget products so that Chinese can afford them.
Makes perfect sense. Having an R&D center located in Shanghai seemed to me to provide no advantage over having it in Cupertino, especially considering the innovation in Cupertino over the years without it. And frankly, it'd be a huge pain and a distraction for Ive to have to travel that far just to really get a feel for what they were up to. They could easily have their R&D centre located in Cupertino in the new building, where they could provide weekly to monthly updates to Ive when he comes around to visit. This would be far more focused, more secure, more efficient and far easier.
A bit of a shame if this is only about supply chain management.
One way for Apple to win over Chinese consumers more is to design a device that is more suited to the needs of the people in China.
Like a more budget iPhone 5 with smaller storage, made from plastic? Yeah, if only they could figure that one out when not working from a building physically located in Shanghai. :D
Like a more budget iPhone 5 with smaller storage, made from plastic? Yeah, if only they could figure that one out when not working from a building physically located in Shanghai. :D
Of course, Chinese wages are going up every year, and unemployment seems to be rising in Western countries. Maybe Apple should just wait a few months until China's the developed hyperpower where everyone needs to have their R&D?
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Um this would be R@D for Apple. The very type of R@D they would want int China. R@D about the supply chain. "A chain about nine miles long" (see William Gibson) Those in power would want this too.