Apple is poised to introduce advanced artificial intelligence capabilities to its iPhones in China as early as May, according to recent reports. The tech giant has established dedicated teams both in China and the United States to facilitate this development. Additionally, Apple is collaborating with local companies for its generative AI needs within the country. Notably, Alibaba Group’s Chairman, Joe Tsai, confirmed during an event that Apple will leverage Alibaba's AI technology for iPhones sold in China. While the exact rollout timeline remains unclear, it is understood that the necessary approvals from Chinese regulators are pending.
The integration of AI technology into iPhones sold in China represents a strategic move by Apple. This initiative involves utilizing Alibaba’s AI models specifically designed to comply with Chinese regulations. These models include a layer that can filter out certain types of content as required by the Chinese government. Alibaba retains the authority to request updates to these AI models if mandated by the government. Consequently, outdated or non-compliant AI features on users' devices will be disabled until they update their phones to remove prohibited content. Importantly, these restrictions apply exclusively to iPhones intended for sale within China, not those purchased elsewhere. Even devices meant for other regions will have limited AI functionality once their location is changed to mainland China.
Apple has been exploring partnerships with various regional companies to meet its AI requirements. In addition to Alibaba, the company has engaged with DeepSeek and Baidu. The collaboration with Baidu focuses on specific features like Visual Intelligence, enabling users to find information online by scanning objects with their phones. For more resource-intensive AI processes that require external server processing, Apple will likely partner with local firms to ensure compliance with Chinese regulations.
Introducing AI features to iPhones in China is crucial for Apple as the country serves as its second-largest market. However, sales have been declining due to increasing competition from local brands offering advanced AI capabilities. In the final quarter of 2024, Apple experienced an 11.1 percent drop in sales in China, placing it third in the smartphone market behind Huawei and Xiaomi. This strategic move aims to regain market share and enhance user experience by integrating cutting-edge AI technology tailored for the Chinese market.