Apple is reportedly set to introduce highly anticipated artificial intelligence (AI) features to iPhones in China through a partnership with Chinese tech giant Alibaba. This collaboration aims to provide AI-driven services tailored specifically for the Chinese market, as confirmed by sources familiar with the development. Apple and Alibaba have developed these AI features and submitted them for approval to China’s Cyberspace Administration, which oversees digital policies and cybersecurity in the country.
Previously, Apple had selected Baidu as its primary AI partner to integrate AI features into iPhones, but Baidu’s AI models did not meet Apple’s quality standards. As a result, Apple explored alternatives, including AI models from Tencent, ByteDance (the parent company of TikTok), Alibaba, and Deepseek. After rejecting Deepseek for lacking the resources needed for large-scale deployment, Apple ultimately chose Alibaba, signaling confidence in Alibaba’s AI capabilities.
The partnership is seen as a strategic move for Apple to leverage Alibaba’s vast consumer data, including shopping behaviors and payment preferences, to enhance its AI models and offer more personalized services to users. This collaboration comes at a critical time as Apple faces increasing competition from local Chinese smartphone brands like Xiaomi, Oppo, and especially Huawei.
In Q1 2025, while Apple’s global revenue rose 4% year-over-year to an all-time high of $124.3 billion, its revenue from the Greater China region dropped 11.1%, totaling $18.51 billion. Meanwhile, Huawei experienced a significant 42% increase in sales during the same period. As Apple struggles to keep up with rivals in China, the addition of AI features is seen as essential for regaining market share and staying competitive in the region.
