Apple is set to establish a supply chain management center in Shanghai, the largest city by population in China. This new rumor, which comes to us via Tencent Tech, contradicts yesterday’s report that instead referred to the establishment of a research and development (R&D) center.
The center will be located in Shanghai’s Pudong economic development zone and will cost Apple $8 million per year in rent.
According to the Chinese tech new site’s insider source, Apple has already started hiring high-end supply chain management experts in the city to operate the center.
Apparently, someone from Apple’s marketing department in China, no less, told Tencent Tech that the center is not for R&D.
Previous accounts pointing to the possibility of an R&D center are likely to have been based on inaccurate reports. Specifically, these reports incorrectly claimed that Apple CEO Tim Cook promised to set up an R&D center in China during his recent visit in the country.
In any case, Apple’s establishment of a supply chain management center in China makes perfect sense.
As indicated in the Supplier Responsibility Progress Report released by Apple a few days ago, 14 of the Apple’s 17 final assembly facilities are located in China.