Apple is partnering with Alibaba to introduce artificial intelligence (AI) features for iPhone users in China, according to a report by The Information. This move aims to address Apple’s declining market share in the region, where competitors like HUAWEI have already integrated AI tools into their devices.
The report said Apple initially selected Baidu as its primary AI partner last year, but later shifted focus after Baidu’s AI models failed to meet Apple’s standards. Apple then evaluated AI models from Tencent, ByteDance, Alibaba, and Deepseek. However, Deepseek was ruled out due to its limited team size and experience.
Alibaba’s Data Edge and Regulatory Approval
Alibaba’s extensive data on user shopping and payment habits reportedly influenced Apple’s decision, as this data could help train AI models and deliver more personalized services. The companies have submitted their co-developed AI features to China’s cyberspace regulator for approval.
The report added that rolling out AI tools is critical for Apple, as iPhone sales dipped during the holiday quarter—typically its strongest sales period—due to the lack of AI features. Apple has forecasted strong sales growth for the current quarter, raising hopes for a rebound in demand.
With Alibaba’s involvement, the approval process for AI features with Chinese regulators might accelerate. iPhone users in China could soon experience smarter Siri responses, improved search capabilities, and enhanced personalization options.
Apple’s Strategy to Stay Relevant in China
This partnership marks a shift for Apple, which has traditionally maintained tight control over its ecosystem. To remain competitive in China, Apple is compromising by integrating Alibaba’s AI into its devices. This raises questions about how regional differences might shape future Apple products.
For now, Apple’s immediate focus is to ensure iPhones in China feel as advanced as those from local competitors. As AI becomes a key factor for consumers, the partnership with Alibaba could help Apple stay relevant in one of the world’s largest markets. Further details are expected as the collaboration progresses.