Apple is working with Alibaba to add new AI features to iPhones in China. This partnership is a way for Apple to improve iPhone sales in China, where it faces strong competition from local smartphone brands.
Apple’s sales in China have dropped by 11% compared to last year. Chinese brands like Huawei and Xiaomi are growing fast because they offer advanced AI features at lower prices. By teaming up with Alibaba, Apple hopes to make iPhones more attractive to Chinese users with better AI technology.
Apple has not shared full details about the AI features yet. However, they will likely include improvements in voice assistants, better privacy protections, and AI services designed for Chinese users. Alibaba’s experience with AI and cloud technology could help Apple create features that match local needs.
Apple has struggled to launch AI features in China because of strict government rules. Companies must get approval before offering AI services. By working with Alibaba, which understands China’s regulations well, Apple might be able to bring AI to iPhones more easily.
Apple hopes these new AI features will encourage more people in China to buy iPhones or upgrade to newer models. Some people think this will help Apple compete better, but others are unsure if it will be enough to beat Chinese brands, which already offer strong AI features.
This partnership shows Apple’s new strategy to work with local companies and adapt to the Chinese market. Whether it will help Apple win back customers depends on how good the new AI features are and how well they are received by users in China.
Update: 12th Feb, 2025
Alibaba Shares Surge as Apple Chooses Its AI for iPhones in China
Alibaba’s Hong Kong-listed shares hit a four-month high on Wednesday after reports emerged about a partnership with Apple to develop AI features for iPhones in China. According to The Information, Apple chose Alibaba over other Chinese tech giants like Baidu, Tencent, ByteDance, and DeepSeek after evaluating their AI models. Alibaba’s deep user data and advanced technology reportedly played a key role in the decision, as they could help Apple offer more personalized services to Chinese consumers.
Both companies have submitted their AI-powered features for regulatory approval in China, with plans to launch them in April. Alibaba’s AI models, developed under its Tongyi Qianwen framework, are expected to improve Apple Intelligence’s ability to understand local user preferences. Meanwhile, DeepSeek was reportedly unable to meet Apple’s integration requirements due to limited resources. Following the news, Alibaba’s stock surged over 8% to HK$113.90, its highest level since October 2024.
Update
February 13, 2025
Alibaba ($BABA) Chairman Joe Tsai announced today that the company is collaborating with Apple ($AAPL) to introduce AI features for iPhones in China, according to CNBC.
Apple is still working with Baidu on AI projects for iPhones in China, even after bringing in Alibaba as a new partner. According to The Information, Baidu is developing advanced AI-powered search tools for images and text,
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