Apple Intelligence in China: Alibaba becomes new AI partner

Alibaba has officially announced a partnership with Apple to bring Apple Intelligence, the company's new AI technology, to the iPhone in China. The confirmation came from Alibaba Chairman Joe Tsai, catapulting the Chinese company's stock to a three-year high. This partnership is an important step for Apple to improve its market position in China. The company has struggled with weak sales in recent quarters, partly because Apple Intelligence was not previously available in China. The deal with Alibaba could change that.

Apple Intelligence uses OpenAI technology in other markets, but China has strict regulations on artificial intelligence. The Chinese government requires foreign companies to use local AI models. To meet these requirements, Apple will use Alibaba's Qwen AI model in China. The decision to choose Alibaba is particularly noteworthy because Baidu was originally considered as an Apple partner. But Apple ultimately chose Alibaba because the company is considered one of China's leading AI providers. The launch of Apple Intelligence in China is crucial for Apple, as the iPhone must compete against strong competition. Huawei has caught up quickly in recent months and overtaken Apple in sales figures. Now Apple is relying on competitive AI features to make up for lost ground.

Apple relies on Alibaba for artificial intelligence in China

Joe Tsai first publicly confirmed the partnership at the World Governments Summit in Dubai. According to Tsai, Apple spoke with several companies in China before choosing Alibaba. Apple Intelligence will operate in China with the help of Qwen, Alibaba's AI model. This solution meets regulatory requirements and allows Apple to offer AI features on the iPhone. Until now, Apple Intelligence was not available in China, which was a disadvantage in competition with local smartphone manufacturers. Apple itself stated in its last quarterly report that the lack of Apple Intelligence was one of the reasons for weak sales in China. The company is now betting that the adoption of AI technology will lead to a turnaround.

What does this mean for Apple users in China?

There is no exact date yet for the launch of Apple Intelligence in China. However, Apple has confirmed that the AI will be available in some regions of Europe, including Germany, with iOS 18.4 in April. The launch in China could follow later this year. For iPhone users in China, this means that they will soon have access to features that are already available in other markets. These include:

AI-supported assistants that can write and edit texts
Better Siri features that respond more intelligently to requests
Image generation and photo enhancements directly on the device
Automatic summaries of messages and documents

These features could make the iPhone more attractive to Chinese buyers again, especially in the premium segment.

How does Alibaba benefit from the partnership?

For Alibaba, the deal with Apple is a great success. The company strengthens its position as a leading AI provider in China and gains a prestigious partner. After the announcement of the partnership, Alibaba's share price rose to a three-year high. This shows that investors have great confidence in the deal. The collaboration with Apple could help Alibaba further develop its AI technology and assert itself against competitors such as Baidu. It is also interesting that Apple ultimately chose Alibaba despite previous reports of a collaboration with Baidu. Apparently Alibaba convinced Apple more with its technology.

Apple vs. Huawei: Can Apple Intelligence narrow the gap?

The Chinese smartphone market is highly competitive. Apple has been under pressure in recent months due to Huawei's significant success with new models. In the last quarter, Apple fell to third place behind Huawei and Vivo. With Apple Intelligence, the iPhone could regain its appeal. Many Chinese buyers rely on innovative AI features, and this is precisely where Apple now aims to catch up. At the same time, the deal with Alibaba demonstrates that Apple is adapting to the specific requirements of the Chinese market. The company cannot simply roll out its technology globally but must rely on local partners in China. It remains to be seen exactly when Apple Intelligence will be available in China and how well the integration with the Qwen AI model will work. But the course has been set: Apple is entering into a strategic partnership with Alibaba to remain competitive in the Chinese market. (Image: Apple)