Apple has reportedly sealed a partnership with Alibaba to bring its Apple Intelligence platform to China. According to a report by The Information on Tuesday, the deal comes after Apple considered but ultimately rejected collaborations with AI startup DeepSeek and tech giant ByteDance.
China remains one of Apple’s most important markets, yet the company has struggled to introduce its AI features in the region. The delays have given local competitors, like Huawei, an opportunity to fill the gap. This has further contributed to Apple’s declining sales.
Why Apple Turned Down DeepSeek and ByteDance
Apple’s search for a local AI partner has been a winding road. Initially, the company explored a potential deal with DeepSeek, an AI startup gaining worldwide attention. Apple also considered ByteDance, the parent company of TikTok, which has developed its own AI technology. However, neither partnership came to fruition.
Instead, Apple initially selected Baidu to power Apple Intelligence in China. However, adapting Baidu’s AI models to Apple’s ecosystem reportedly proved too difficult. With these setbacks, Apple turned to Alibaba, a company with a well-established cloud infrastructure and extensive experience in AI development.
Also read: Apple Intelligence Redefines AI, Literally
Alibaba Steps in as Apple’s AI Partner
Alibaba, China’s e-commerce and cloud computing giant, has emerged as Apple’s latest partner. Apple had a quest to bring AI features to Chinese consumers and Alibaba became the worthy partner. Alibaba’s Cloud AI capabilities make it a strong choice for Apple. This is because it offers the potential for smooth integration into iOS and other Apple products.
This aligns with Apple’s strategy of working with local partners in regions where it faces regulatory and technical barriers. In the U.S., Apple has already partnered with OpenAI to integrate ChatGPT into Siri, while also keeping the door open for future collaborations with Google’s Gemini.
Apple’s Challenges in China
China has long been a crucial market for Apple, but the tech giant has faced growing challenges:
- Declining iPhone Sales: Apple’s iPhone sales in China dropped by 11% recently, with CEO Tim Cook citing the absence of Apple Intelligence as a major factor.
- Tough Competition: Domestic smartphone brands like Huawei and Xiaomi have rapidly improved their AI capabilities. This has attracted local consumers.
- Regulatory Hurdles: Strict government regulations require Apple to work with local AI providers rather than using its own or foreign-developed AI models.
What This Means for iPhone Users in China
The partnership with Alibaba is expected to pave the way for Apple Intelligence’s long-awaited debut in China. However, it remains unclear how Alibaba’s AI technology will compare to the capabilities of OpenAI’s ChatGPT or Google’s Gemini.
For Chinese iPhone users, this could mean:
- Improved AI-powered Siri capabilities
- Enhanced text and image generation features
- Smarter on-device suggestions and automation
- Potential access to Alibaba’s AI-driven services
The Timing: Apple’s Next Big Launch
This report comes just as Apple prepares to launch its fourth-generation iPhone SE, a budget-friendly model that has historically performed well in China and India. Affordability plays a key role in Apple’s market strategy so adding AI features to its devices could give the company a competitive edge.
