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By Paul Carsten BEIJING (Reuters) – Apple Inc will boost its investment in China, one of its most important but increasingly difficult markets, and build its first Asia-Pacific research and development center in the country, Chief Executive Tim Cook said on Tuesday. Demand for Apple's phones has plummeted in China, and the government maintains a wary attitude towards foreign technology. Apple's new research and development center will be built by the end of the year, Cook told Vice Premier Zhang Gaoli, one of China's most senior officials, according to the official Chinese state broadcaster.

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As iPhone sales declined for the second straight quarter, Apple CEO Tim Cook peeled back the curtain ever so slightly on its work in artificial intelligence and augmented reality, aiming to reassure investors that the company is ready to ride the next wave of technology. Raving about hit smartphone game Pokemon GO, Cook stressed that Apple is “high on [augmented reality] for the long-run” and investing heavily. Augmented reality, in which computer-generated content is overlaid on the real world, is one of the latest fixations in the technology business, with Pokemon GO among the first applications to catch on.

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By Yasmeen Abutaleb and Dustin Volz WASHINGTON (Reuters) – As Facebook Inc Chief Executive Mark Zuckerberg prepares to meet conservative leaders on Wednesday to discuss allegations about political bias at the social media website, one thing he may not have to worry about is federal regulation. Although the U.S. Senate committee is investigating whether there is liberal bias in how Facebook employees select news stories for its “trending topics,” there is little chance the government will try to regulate their practices, said Republican Senator John Thune, chairman of the Senate Commerce Committee. “I don't have any reason to believe that would be necessary,” Thune told reporters on Tuesday.

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By Alex Dobuzinskis LOS ANGELES (Reuters) – A cellphone expert overrode the lock function on an Apple iPhone to help Los Angeles police in a homicide investigation around the time U.S. authorities were battling the company to open other phones in criminal cases, court records showed on Thursday. The successful hack of the iPhone 5s in the Los Angeles case is another sign U.S. authorities are turning to third-party contractors to unlock smartphones rather than relying on manufacturers like Apple Inc , which helped in the past. The third-party hacks have Apple racing to strengthen its encryption technology.

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“We will return the option for full-disk encryption with a Fire OS update coming this spring,” company spokeswoman Robin Handaly told Reuters via email on Saturday. Amazon's decision to drop encryption from the Fire operating system came to light late this week. On-device encryption scrambles data so that the device can be accessed only if the user enters the correct password.

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GoPro Inc estimated fourth-quarter revenue below market expectations due to disappointing sales of its action cameras, and said it would cut 7 percent of its workforce, sending its shares into freefall. GoPro shares plunged 28 percent to $10.50 in extended trading, or less than half its 2014 IPO price of $24. The San Mateo, California-based company said it expects revenue of about $435 million for the fourth quarter, well below analysts' average estimate of $511.9 million, according to Thomson Reuters I/B/E/S. The company, which had about 1,500 employees at the end of 2015, said quarterly revenue was also hit by a price cut meant to boost demand for its Hero4 Session cameras.

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Apple's loyal army of software developers is joining the tech giant in its bid to conquer the living room with a new version of Apple TV, creating apps for the big screen that they hope will attract users and unlock a rich source of revenue. A long-awaited update to Apple TV, which launched in 2007, will start shipping in 80 countries on Friday. An App Store is the centerpiece of the new device, and hundreds of apps will be ready at launch, including gaming, shopping and photography.

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By Heather Somerville and Jane Wardell SAN FRANCISCO/SYDNEY (Reuters) – A significant number of Apple Inc customers are reporting their mobile devices have crashed after attempting to upload the new iOS 9 operating system, the latest in a line of launch glitches for the tech giant. Twitter and other social media were awash with disgruntled customers reporting two distinct faults, with one appearing to be linked specifically to older models of Apple iPhones and iPads. “It is beyond inconvenient to not be able to use your phone for a day,” said student Pip Cordi as staff in the Apple store in central Sydney looked at her phone on Friday.

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Apple Inc's financing plan for its new iPhones is likely to force U.S. carriers to work harder to win and retain customers. Apple announced a program on Wednesday that will allow customers to finance unlocked versions of the new iPhones through monthly installments starting at $32, regardless of which carrier they choose. “Simply, carriers must respond by ensuring their installment plans and terms are competitive versus those from Apple and double down on differentiation based on network and tariff,” said Geoff Blaber, an analyst with CCS Insight.

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By Dan Levine SAN FRANCISCO (Reuters) – Uber drivers are entitled to class action status in litigation over whether they are independent contractors or employees, a U.S. judge ruled on Tuesday, in a case that could have wide implications for the sharing economy. Three drivers sued Uber in a federal court in San Francisco, contending they are employees and entitled to reimbursement for expenses, including gas and vehicle maintenance. In the ruling, U.S. District Judge Edward Chen in San Francisco said drivers could sue as a group on the question of whether they are employees or contractors, and over their demand for payment of tips that were not passed on to them.