Apple Goes on Hiring Binge in Asia to Speed Product Releases - Wall Street Journal

March 3, 2014 6:07 a.m. ET



TAIPEI— Apple Inc. AAPL +0.66% Apple Inc. U.S.: Nasdaq $531.24 +3.48 +0.66% March 4, 2014 4:00 pm Volume (Delayed 15m) : 9.16M AFTER HOURS $530.91 -0.33 -0.06% March 4, 2014 7:59 pm Volume (Delayed 15m): 105,587 P/E Ratio 13.09 Market Cap $473.86 Billion Dividend Yield 2.30% Rev. per Employee $2,163,820 03/04/14 Apple's Finance Chief Is Stepp... 03/04/14 HEARD ON THE STREET: Apple's G... 03/01/14 Apple Working With Ferrari, Vo... More quote details and news » is hiring hundreds of new engineers and supply-chain managers in China and Taiwan as it attempts to speed product development and introduce a wider range of devices.


The Cupertino, Calif., company is hiring engineers from rival smartphone maker HTC Corp. 2498.TW +2.96% HTC Corp. Taiwan NT$139.00 +4.00 +2.96% March 5, 2014 2:37 pm Volume : 15.92M P/E Ratio N/A Market Cap NT$114.98 Billion Dividend Yield 1.44% Rev. per Employee NT$11,573,400 02/28/14 German Court Rejects Patent- I... 02/24/14 HTC Unveils New Mid-Tier Devic... 02/23/14 Microsoft Broadens Number of M... More quote details and news » and other Taiwanese technology firms to build up teams in Shanghai and Taipei, people familiar with the matter said.


The hiring push reflects Apple's need for more engineers to work with Asian suppliers on developing components for iPhones and iPads as it plans for faster and more-frequent product releases. Apple also is increasing its number of supply-chain managers, following criticism over factory conditions at some of its suppliers.


Apple has added several hundred engineers and operations staff in China since mid-2013, people familiar with the matter said. The total number of engineers and operations staff in China now exceeds 600, they said.


Apple declined to give figures on its China staff.


Apple in August used the professional-networking website LinkedIn to reach engineers at HTC and Taiwanese suppliers Inventec Corp. 2356.TW +3.48% Inventec Corp. Taiwan NT$31.20 +1.05 +3.48% March 5, 2014 2:37 pm Volume : 15.02M P/E Ratio 18.91 Market Cap NT$112.47 Billion Dividend Yield 2.56% Rev. per Employee NT$8,630,290 More quote details and news » and Quanta Computer Inc., 2382.TW +6.92% Quanta Computer Inc. Taiwan NT$78.80 +5.10 +6.92% March 5, 2014 2:37 pm Volume : 19.33M P/E Ratio 16.25 Market Cap NT$285.30 Billion Dividend Yield 5.08% Rev. per Employee NT$7,216,290 More quote details and news » among others.


"Apple is building an engineering team in Taipei to drive new iPhone product development," Apple said in a recruiting email.


The company also has been hiring for its main Asian base in Shanghai, where it moved into a new three-building complex last year, people familiar with the matter said.


The company is juggling more projects than ever against the industry's shortening product cycle. Apple is trying to fend off competition from low-cost phones using Google Inc. GOOG +1.02% Google Inc. Cl A U.S.: Nasdaq $1214.91 +12.22 +1.02% March 4, 2014 4:00 pm Volume (Delayed 15m) : 1.46M AFTER HOURS $1213.92 -0.99 -0.08% March 4, 2014 7:58 pm Volume (Delayed 15m): 13,212 P/E Ratio 33.26 Market Cap $408.27 Billion Dividend Yield N/A Rev. per Employee $1,110,730 03/04/14 Video-Streaming Power of Roku ... 03/01/14 Apple Working With Ferrari, Vo... 02/26/14 TiVo Swings to Profit, Adds Su... More quote details and news » 's Android operating system by introducing more devices. Apple's share of the global smartphone market fell to 17.9% in the fourth quarter from 20.9% a year earlier, according to market-research firm IDC.


Last year's release of the iPhone 5S and 5C marked the first time Apple introduced two smartphone models at once. The company has been working with component suppliers in Asia to make two larger-screen iPhones this year.


The hiring push also comes as Apple is trying gain ground in Greater China, the company's fastest-growing market in the latest quarter. Apple has high hopes for the market, which includes Hong Kong and Taiwan, after No. 1 mobile operator China Mobile Ltd. 0941.HK -0.20% China Mobile Ltd. Hong Kong $73.75 -0.15 -0.20% March 5, 2014 4:01 pm Volume : 15.16M P/E Ratio 9.28 Market Cap $1485.18 Billion Dividend Yield 4.64% Rev. per Employee $4,065,060 01/28/14 Vodafone Shareholders Agree to... 01/27/14 Apple's Marginal Quarter 01/26/14 AHEAD OF THE TAPE: Apple Needs... More quote details and news » began selling iPhones in January. Apple said sales in Greater China rose 29% to $8.84 billion in the quarter through December.


Core research and development will remain in Cupertino, the people familiar with the matter said. But new positions in Greater China span a wide range, from working with suppliers on hardware development for touch screens and cameras, to electrical engineering and software quality assurance, according to Apple job postings.


The company has been growing globally. It had 80,300 full-time employees, according to its annual report in September, up from 72,800 a year earlier.


Apple is moving to strengthen its manufacturing base in China even as the company moves a few production lines back to the U.S. Facing political pressure from lawmakers and activist groups over its extensive contract manufacturing footprint in Asia, Apple said in December it started manufacturing some Mac Pro personal computers in Austin, Texas. It has also opened a component plant in Mesa, Ariz.


But the activity at those facilities pales in comparison to the scope of Apple's manufacturing presence in China, built mainly through supplier and contract manufacturing partners. Apple in recent years has expanded its supplier base to secure more production capacity in China, adding China-based contract manufacturers Wistron Corp. 3231.TW +1.82% Wistron Corp. Taiwan NT$25.15 +0.45 +1.82% March 5, 2014 2:37 pm Volume : 12.57M P/E Ratio 8.72 Market Cap NT$59.22 Billion Dividend Yield N/A Rev. per Employee NT$11,061,900 More quote details and news » and Compal Communications Inc. 2324.TW +0.25% Compal Electronics Inc. Taiwan NT$20.15 +0.05 +0.25% March 5, 2014 2:37 pm Volume : 16.88M P/E Ratio 65.00 Market Cap NT$90.47 Billion Dividend Yield 5.00% Rev. per Employee NT$10,169,700 More quote details and news » to help produce coming iPhones and iPads.


—Daisuke Wakabayashi in San Francisco contributed to this article.


Write to Eva Dou at eva.dou@wsj.com







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