Apple is currently scouting for partners to integrate AI capabilities into iPhones sold in China. It was reported on Thursday that Apple is in early discussions with Tencent and ByteDance, the parent company of TikTok, about incorporating AI models into iPhones designed for the Chinese market. The sources noted that talks between Apple, Tencent, and ByteDance are still in their initial stages.
Apple’s market share in the world’s largest smartphone market is shrinking. Its latest iPhones lack AI features, intensifying competition with domestic brands like Huawei.
In August, Huawei re-entered the high-end market with a smartphone powered by Chinese-made chips. Last month, it unveiled the Mate 70 series, which includes AI features driven by its proprietary large language model.
In contrast, Apple began integrating OpenAI’s ChatGPT into its devices this month as part of its Apple Intelligence initiative. This update allows Siri to use chatbot technology to answer questions about documents, photos, and presentations.
However, ChatGPT is unavailable in China, where regulations require government approval before generative AI services can be publicly released.
Facing declining market share, Apple is actively seeking local partners to bolster its AI capabilities in China.
A partner that successfully delivers Apple’s AI services could gain a competitive edge in China’s increasingly crowded AI landscape. Major tech firms and startups have launched numerous large language models.
This includes ByteDance’s Douyin, Tencent’s Hunyuan, and Baidu’s Ernie.
Reports suggest that Apple and Baidu have discussed using AI models in China. However, progress stalled this month due to technical concerns, including using iPhone user data for training AI models.
According to IDC, Apple’s smartphone sales in China fell by 0.3% in the third quarter compared to last year, while Huawei’s sales surged by 42%.
Apple briefly dropped out of China’s top five smartphone suppliers in the second quarter but showed signs of recovery in the third quarter.
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