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Alibaba on Thursdayconfirmedrecent reportsof a partnership with Apple that ’s prepare to bring AI characteristic to iPhones sold in China . The deal is an authoritative one for Apple , as iPhone sales event have dropped sharply in the world ’s largest smartphone market . The handset receive an 11 % year - over - year drib in China , fit in to Apple’smost recent profit report .
Apple “ verbalize to a number of ship’s company in China , ” Alibaba chairperson Joseph Tsai pronounce Thursday during Dubai ’s World Government Summit . “ In the last they chose to do business with us . They want to expend our AI to power their phone . We palpate exceedingly prestigious to do business with a great ship’s company like Apple . ”
According to reports , Apple’searlier deal with China ’s Baiduhas been beset with issues conform the lookup giant ’s AI offering . Apple is also trust to have explored partnerships with ByteDance and DeepSeek , prior to settling on Alibaba . These sorts of partnerships are fundamental to U.S. companies like Apple as they work for regulatory approval in China . Both Alibaba and Apple have reportedly submitted relevant fabric to local authorities .
Ahead of the fellowship ’s most recent lucre call , CEO Tim Cook cited the absence of Apple Intelligence , the fellowship ’s in - house generative AI solution , as a kick in divisor in slow down international sale .
“ During the December quarter , we see that in markets where we had rolled out Apple Intelligence , that the year - over - year carrying into action on the iPhone 16 family was stronger than those markets where we had not hustle out Apple intelligence , ” the executivetold CNBC .
The company has banked on Apple Intelligence to drive the next major iPhone “ tiptop cycle ” — a term advert to a dramatic uptick in gimmick sale . Apple ’s speed and strategy in roll out its own generative AI solvent hamper its ontogenesis , as Google continues to deliver fresh Gemini feature film by way of Samsung speech sound , Pixel equipment , and various other Android offerings .
Increased domesticated competition has also run through into Apple ’s China market share . Vivo took the lead in the fourth quarter of last twelvemonth , with 17 % of the securities industry , according tofiguresfrom enquiry house Canalys . Huawei , which has seen a massive rebound following sanctions from the first Trump administration , originate shipments 37 % class over year , score a second - place last at 16 % market share . Apple , which commanded 24 % of the market the same metre last year , dropped to 15 % , putting it in a third - spot numb warmth with Xiaomi and Oppo .
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Apple is bank on the Alibaba deal to help recover some of that market , but even if the partnership passes regulatory scrutiny , Apple ’s China future is n’t crystal well-defined . tariff and trade tenseness are likely to further bear upon sales in the key market .
The company has notably been cozying up to Donald Trump during the prexy ’s 2nd term . Cook donated$1 million to Trump ’s inaugural commission in January . More recently , Apple followed Google ’s wind by changing the name of the Gulf of Mexico to the Gulf of Americaon its Maps app .
TechCrunch has reach out to Apple for extra gossip on the Alibaba deal .
