Apple Joins Forces with Alibaba to Outpace Huawei in AI Smartphone Race

Apple is partnering with Alibaba to venture into the AI smartphone market in China. The company is exploring solutions to bring AI features to its iPhones in a bid to compete with powerful rivals like Huawei and Honor.

Despite being a flagship brand, Apple launched the iPhone 16 models in China without AI capabilities, while Huawei integrated AI tools into its devices starting in 2023. This lack of AI in the iPhone 16 series led to a significant decline in Apple’s sales in China, causing the company to lose ground to Huawei.

However, Apple is now looking to reclaim its position in the Chinese smartphone market through a new collaboration with Alibaba. While details about the AI features remain unclear, this partnership marks a significant move towards enhancing Apple’s AI capabilities in China.

Apple also approached several Chinese companies for AI support, initially seeking Baidu’s assistance. However, Baidu’s AI models didn’t meet Apple’s requirements. Other potential AI partners, like Tencent and ByteDance, have also been considered, and there are even rumors that Apple might adopt Huawei-powered DeepSeek AI models for future iPhones. However, the Chinese AI startup is said to lack the resources to support a large consumer base.

Apple has now approached Alibaba since the Chinese firm easily manages large amounts of data related to customers’ shopping and payment details. Thus, it may help iPhone models to offer more personalized AI services to its users.

With these efforts, Apple also predicts to witness a rebound in iPhone sales in Q1 2025. Whether this prediction turns into reality or remains a dream for the company would be worth looking forward to.