Apple Targets China’s Big Techs in a Bid to Push AI feature in the Asian Market

Apple has reportedly commenced discussions with Tencent and TikTok’s mother company Bytedance about integrating AI models in iPhones sold in China. Reuters reported that the big tech’s China Apple AI feature integration comes amidst declining market share in the Asian country. China is the largest smartphone market in the world.

ChatGPT Incorporation

Apple rolled out its AI feature in iPhone 16 by integrating ChatGPT earlier this month. ChatGPT supports Apple Intelligence, which allows the company’s Siri voice assistant to leverage its chatbot’s expertise like user queries regarding documents and photos.

ChatGPT is not accessible in China. The country’s regulation requires generative AI service providers to get government approval prior to public release. These regulatory constraints in China pushed Apple into getting local partners to boost AI features in its devices. The lack of AI capabilities in Apple’s latest iPhones has affected its sales, particularly due to competition from local brands like Huawei.

Apple Intelligence Skepticism

Apple’s China AI partnership with ByteDance and Tencent is critical for the big tech in navigating the competitive Chinese market. Over the last few months, the US big tech has been experiencing a range of challenges in the Asian country.

These include crackdowns on its app store fees. In the month of August 2024, Apple intensified its efforts to convince ByteDance and Tencent to seal the loopholes that enabled in-app developers to bypass the company’s 30% commission.

But there has been skepticism about Apple’s AI system. In October 2024, they suggested that there was a chance the big tech’s hyped Apple Intelligence system would not meet expectations. This skepticism underscores the importance of its talks with China’s big techs to boost its AI capabilities.

Apple’s Opticism

Apple CEO Tim Cook visited China in October 2024, to meet government officials in Beijing. The purpose of his visit was to address the increasing competition in China and discuss the Apple Intelligence rollout.

In November 2024, Cook said he was optimistic about the company’s performance in China regardless of the prevailing economic challenges. Even so, he refrained from talking about the impact of economic stimulus. Apple’s discussions with ByteDance and Tencent are still in the preliminary stages.

A successful Apple China AI deal will be a major win for the US increasingly crowded AI industry. In recent years, dozens of large language models have been launched in the country by big techs and AI startups.