Apple Intelligence: Apple in search of partners in China
Apple needs local companies to bring its AI offering to the People's Republic. The search is currently underway, but a deal is still pending.
Apple Intelligence on Mac, iPhone and iPad.
(Image: Apple)
Apple wants to launch the new Apple Intelligence functions on its second most important market, China, as quickly as possible. The problem is that the company needs local partners; otherwise it will probably not be able to obtain the necessary AI license. Accordingly, the issue in the People's Republic is more of a marathon than a sprint, writes the US stock market broadcaster CNBC. According to the Wall Street Journal, Apple is in danger of losing out to local rivals that have already integrated AI features into their smartphones.
Discussions with the big players
Nevertheless, the iPhone company appears to be continuing undaunted. According to the WSJ, there have been negotiations with major Chinese internet companies such as the search engine Baidu (Ernie Bot) and the e-commerce giant Alibaba Group. There have also been talks with start-ups such as Baichuan AI. However, deals are not yet in sight.
The strategy that Apple is pursuing in the USA – a combination of its own models for text and image generation, plus partnerships with external suppliers such as OpenAI and later Google – cannot be transferred 1:1 to China. This is because government licenses are required there before AI models can be trained.
Apple considers itself well positioned
According to the WSJ, the regulatory authorities are examining the models to ensure that they "do not influence public opinion in a way that is not approved by the government". By March, Beijing's internet regulator, the Cyberspace Administration of China, had already approved 117 generative AI products. However, not a single one of these came from abroad. ChatGPT is also not officially approved and can only be used via VPN.
Nevertheless, Apple believes it is well positioned in China. Although it is the "most competitive market in the world", the company is very confident about its own position, said CFO Luca Maestri in an interview last month. The gloomy business situation for the iPhone in China had recently improved somewhat, although Apple also reached into the discount box there.Analysts are unsure how long it will be before Apple Intelligence comes to China. However, the company is relying on a slow rollout anyway. This year, the system will only be able to work in US English, while Apple is proceeding cautiously in the EU due to regulatory requirements.
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(bsc)