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Apple to Introduce AI Features to iPhones in China: Alibaba and Baidu Chosen as Preferred Partners in a "Self-Service" Model

Mobile Internet 2025-02-14 20:18:48 Source:

Apple to Introduce AI Features to iPhones in China: Alibaba and Baidu Chosen as Preferred Partners in a "Self-Service" ModelApple is expected to update its AI feature, Apple Intelligence, on iPhones in mainland China later this year. However, unlike previous updates, this will adopt a "self-service" model, giving users a choice

Apple to Introduce AI Features to iPhones in China: Alibaba and Baidu Chosen as Preferred Partners in a "Self-Service" Model

  • Apple is expected to update its AI feature, Apple Intelligence, on iPhones in mainland China later this year. However, unlike previous updates, this will adopt a "self-service" model, giving users a choice. According to a report by the Science and Technology Innovation Board Daily, citing sources familiar with the matter, Apple has selected Alibaba and Baidu as its foundational model providers. Chinese iPhone users will be able to choose between Alibaba's and Baidu's large language models within the iPhone's system settings. This strategy mirrors Google's approach, allowing users to select their default search engine, highlighting Apple's flexibility and user-centric approach to AI.

This move aims to quickly bring AI functionality to the Chinese market. Apple Intelligence launched globally last June, but the Chinese version has been delayed due to data compliance issues. This directly contributed to Apple's declining revenue in China for three consecutive years, with an 11% drop in Q4 2024. Simultaneously, the rise of domestic brands like Huawei and Xiaomi has intensified competition. In contrast, Apple has seen record-high revenue in regions like the Americas, Europe, and Japan where Apple Intelligence is already available, underscoring the urgent need for this feature in China.

Apple reportedly conducted extensive due diligence in selecting model providers. Besides Alibaba and Baidu, Apple also held discussions with Tencent, ByteDance, Zhipu AI, and other domestic companies. Sources revealed that CEO Tim Cook considered factors such as computing infrastructure, long-term technological capabilities, service capabilities, and team strength. Discussions also took place with the recently emerged AI company DeepSeek, but a partnership failed to materialize due to DeepSeek's perceived shortcomings in engineering capabilities, particularly in post-launch maintenance and implementation. However, Apple plans to support more domestic large language models in the future to expand user choices and continuously improve Apple Intelligence.

Alibaba co-founder and chairman Joseph Tsai indirectly confirmed the partnership at the World Governments Summit 2025 in Dubai. He stated that Apple needed a local partner in China to service its phones and, after discussions with several Chinese companies, chose Alibaba. This indicates Apple's high standards for localization and overall partner capabilities.

Apple plans to introduce the AI features to iPhones in China this year and will continue to update them in the subsequent two iOS versions. This demonstrates Apple's commitment to enhancing its competitiveness in the Chinese market and boosting user loyalty through AI, aiming to regain market share.

While Apple and Baidu have not yet officially responded to inquiries, the reliability of the information has been corroborated by multiple sources, suggesting Apple's strategic deployment in the Chinese AI market has reached a crucial stage.

Industry experts hold differing views. Counterpoint's vice-president, Qi Yingnan, believes that AI-powered smartphones are still a new concept for most consumers, and while AI features might attract some, they won't significantly boost sales in the short term. Apple's move is more of a long-term strategy; in the future, smartphone brands lacking AI capabilities may face high-end user attrition.

Counterpoint's senior analyst Lin Keyu argues that relying on a single large language model is insufficient for greater innovation. Smartphone AI is just the starting point; future integration of additional large model functionalities needs to be considered. Apple's choice of Alibaba and Baidu might signal the future inclusion of more large model providers into Apple's ecosystem, jointly accelerating the development of smartphone AI technology.

Apple's challenges in the Chinese market are undeniable. Revenue declined by 2.2% and 7.7% in fiscal years 2023 and 2024, respectively, plummeting by 11% in Q4 2024. The iPhone 16's launch was also criticized for lacking new AI technology. These factors necessitate a proactive response, and the introduction of AI capabilities is a crucial step in Apple's counteroffensive. Cook admitted in an earnings call that markets with already-launched AI features outperformed those without, further underscoring the technology's importance.

Apple's "self-service" model, allowing user selection of AI model providers, highlights its focus on user experience and leaves room for future innovation. This is not just a technological upgrade but a strategic adjustment. Apple hopes to solidify its position in the high-end smartphone market and reignite growth in China through its AI strategy. Whether Apple can reverse its declining fortunes in China with the help of AI remains to be seen, and the intense competition highlights the growing importance of AI in the smartphone industry. Ultimately, the company that best meets user needs will prevail.

Tag: to in Apple Introduce AI Features iPhones China Alibaba


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