A recent analysis suggests that Apple’s AI service, Apple Intelligence, may encounter regulatory hurdles in China.
On Wednesday, IT media outlet PhoneArena, citing a South China Morning Post (SCMP) report, indicated uncertainty over whether Apple Intelligence, integrated into the new iOS 18 for the iPhone 16, will receive regulatory approval in China.
SCMP noted that Apple’s focus on privacy, on-device processing, and integration of its own large language model (LLM) increases the likelihood of regulatory scrutiny in China. Meanwhile, Apple plans to invest $100 billion in partnership with OpenAI for ChatGPT services alongside the iPhone 16 launch in the U.S.
China has imposed restrictions on commercializing OpenAI’s ChatGPT, which is partially integrated into the iPhone 16. It permits only select models from local AI companies. In response to these constraints, reports suggest Apple might seek collaborations with local firms such as Baidu, China’s largest search engine, and Alibaba.
Apple also faces competitive pressure from local Chinese companies. While Apple’s shipments in China have decreased by 6%, Huawei’s shipments have surged by 44%. Ivan Lam from Counterpoint Research commented, “Apple’s iPhones will continue to be eroded in the premium segment by Huawei and other Chinese brands.”
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