Apple Strikes a Deal with Alibaba
Technology
Chinese tech giant Alibaba has reached an agreement with Apple to integrate its AI solutions into iPhones for the Chinese market. This move marks a major victory for Alibaba in the competitive AI race, while for Apple, it presents an opportunity to offset declining smartphone sales in one of its key regions.
Rumors about the partnership had been circulating for months, as Apple sought a suitable Chinese AI partner among industry leaders like Baidu, Tencent, and ByteDance. In the end, Alibaba was chosen. "They wanted to use our AI for their phones, and we are proud of this collaboration," said Alibaba Chairman Joseph Tsai at the World Government Summit in Dubai.
Apple has been struggling in China amid fierce competition from local brands like Huawei and Vivo, which offer smartphones with advanced AI capabilities. In 2024, Apple’s sales in China fell by 17%, causing the company to lose its market leadership. Analysts believe that integrating Alibaba’s AI could be a key factor in winning back consumers.
Following the announcement, Alibaba’s stock surged over 9%, reaching a three-year high. Meanwhile, Apple has yet to reveal the details of the partnership or its plans for AI integration in its devices.
Apple has been struggling in China amid fierce competition from local brands like Huawei and Vivo, which offer smartphones with advanced AI capabilities. In 2024, Apple’s sales in China fell by 17%, causing the company to lose its market leadership. Analysts believe that integrating Alibaba’s AI could be a key factor in winning back consumers.
Following the announcement, Alibaba’s stock surged over 9%, reaching a three-year high. Meanwhile, Apple has yet to reveal the details of the partnership or its plans for AI integration in its devices.
Powered by Froala Editor