Chinese tech giant Alibaba has announced a partnership with Apple to introduce artificial intelligence features on iPhones in China. So far, Apple Intelligence has not been implemented in the country, which is believed to have contributed to declining iPhone sales. Apple had previously tested AI models from the startup DeepSeek but decided against integrating them into its devices in China for now.
“They talked to a number of companies in China. In the end, they decided to do business with us. They want to use our AI to support their phones,” Alibaba Chairman Joseph Tsai stated. “We are very proud to be doing business with such a great company like Apple.”
Apple Maintains Collaborations with Other Tech Firms
Apple’s partnership with Alibaba does not mean it is abandoning collaborations with other Chinese tech companies. The company continues to work with Baidu on an AI-powered search feature that can process both images and text, alongside updates to the Chinese version of Siri. Additionally, Apple has previously evaluated AI models from Tencent, ByteDance, and DeepSeek.
Any consumer-facing AI features require approval from Chinese regulators. Apple and Alibaba have already submitted their jointly developed AI features to the Cyberspace Administration of China (CAC) for review. We’ll keep you updated as more details emerge.
iPhone Sales in China and AI Expansion
Apple has faced a steady decline in iPhone sales in China, adds NIXSOLUTIONS. The company lost its leading position in smartphone sales in 2024, ranking third in Q4 behind Huawei and Xiaomi. Analysts have frequently pointed to the lack of AI features on iPhones in China as a key factor behind this downturn. With its new AI initiative, Apple aims to close the gap with competitors.
Outside of China, Apple Intelligence operates using a combination of Apple’s proprietary technology and OpenAI’s ChatGPT.