According to a report from Reuters, Apple and Alibaba are joining forces to introduce advanced artificial intelligence capabilities for iPhone users in China. The move comes after a period of uncertainty surrounding Apple’s AI strategy in the region, where it has been facing tough competition from local brands such as Huawei, who have been integrating AI features into their smartphones since last year.
The news of this partnership led to a positive market response, with Apple’s stock rising by 1.5% in early trading and Alibaba’s U.S.-listed shares gaining 2.6%. Apple previously had Baidu as its main partner for AI development in China, but the progress made by the Chinese company did not meet Apple’s expectations.
Following this, Apple explored potential collaborations with other tech giants in China, including Tencent, ByteDance (owner of TikTok), Alibaba, and Deepseek. Ultimately, Apple decided to team up with Alibaba, as Deepseek lacked the necessary resources and expertise to support a large customer base.
Both Apple and Alibaba have yet to comment on the partnership, but it is reported that they have submitted the AI features they co-developed to China’s cyberspace regulator for approval. The integration of these tools is crucial for Apple, as iPhone sales saw a decline during the holiday quarter due to the absence of AI features that were intended to be a key selling point for their latest devices.
Despite the setback, Apple remains optimistic about sales growth in the current quarter, raising hopes for a resurgence in iPhone demand. The decision to partner with Alibaba was influenced by the e-commerce giant’s extensive data on user shopping and payment patterns, which could be leveraged to enhance AI models and provide more personalized services to consumers.
The collaborative efforts between these tech giants signify a significant step towards revolutionizing the smartphone experience in China, showcasing the power of AI technology in shaping the future of mobile devices.
