Apple Partners with Alibaba to Bring Adapted AI Features to iPhones in China

Curated by THEOUTPOST

On Wed, 12 Feb, 8:13 AM UTC

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Apple is collaborating with Chinese tech giants Alibaba and Baidu to adapt its Apple Intelligence system for the Chinese market, complying with local regulations and aiming to boost its presence in its second-largest market.

Apple's Strategic Move in China

Apple is making significant strides to introduce its AI features, known as Apple Intelligence, to the Chinese market. The tech giant is reportedly collaborating with local partners, primarily Alibaba and Baidu, to adapt its artificial intelligence system for iPhones in China 12. This move comes as Apple seeks to regain momentum in its second-largest market, where it has recently experienced a decline in sales 3.

Partnerships and Adaptations

Alibaba has emerged as Apple's primary partner in this endeavor. Joe Tsai, chairman of Alibaba, confirmed the collaboration during the World Governments Summit in Dubai, stating, "Apple has been very selective. They talked to a number of companies in China, and in the end, they choose to do business with us. They want to use our AI to power their phones" 12.

The partnership with Alibaba involves building an on-device system to analyze and modify Apple's AI models for iPhone, iPad, and Mac users in China. This system will include built-in censorship and filtering capabilities to comply with Chinese government requirements 3. Meanwhile, Baidu is set to handle features like Visual Intelligence for the upcoming iPhone 16 3.

Regulatory Compliance and Censorship

To meet China's strict regulations, Apple is working with Alibaba to implement content filtering and censorship measures. This adaptation will allow for government-directed content filtering without user awareness 3. The censorship will apply only to iPhones and other devices sold in China, not to those purchased elsewhere 12.

Technical Considerations

Chinese law mandates that data be processed on China-based servers rather than being sent to servers in other countries. It also requires companies to work with local partners to receive regulatory approval 12. The Chinese version of Apple Intelligence will differ significantly from its US counterpart, relying heavily on local partnerships instead of combining on-device features, server-based processing, and ChatGPT integration 3.

Market Implications

This strategic move comes as Apple faces declining sales in China, where local smartphone brands have gained market share partly due to their AI offerings 34. In the last quarter of 2024, Apple's sales in China dropped by 11.1%, placing it third in the country's smartphone market after Huawei and Xiaomi 4.

Timeline and Expansion

Apple is expected to launch its adapted version of Apple Intelligence for China as early as May 2025 123. The company is also planning to release Apple Intelligence support for new languages, including Chinese, with iOS 18.4 in April 12. This expansion is crucial for Apple as it seeks to compete in key markets such as China and India, where budget-friendly smartphones with premium features are gaining traction 12.

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