Apple is reportedly in talks with Tencent and ByteDance to integrate AI features into its iPhones sold in China. This move comes as Apple faces declining market share and competition from domestic rivals like Huawei, who have made strides in the AI sector.
The Cupertino giant is apparently in talks with Tencent and ByteDance (the TikTok parent company) about the AI features set that rolled out alongside the latest iPhones. The main issue is how to integrate Apple 's artificial intelligence models into iPhones that are sold in China, according to three sources familiar with the matter.
This enhancement, which improves Siri with advanced AI capabilities, such as assisting with photo-related queries and document management, is not yet available in China due to government approval requirements for generative AI services. This is why Apple has to approach and explore partnerships with local companies carefully: Apple needs to meet regulatory requirements, especially as it faces declining market share in the country. Sources indicate that discussions with Tencent and ByteDance are still in the early stages. Neither Apple nor Tencent has commented on the matter, while ByteDance has also refrained from responding. A successful partnership could give Apple’s local collaborator a competitive edge in China’s rapidly growing AI sector, where players like ByteDance’s Doubao, Tencent’s Hunyuan, and Baidu’s Ernie have already made strides. Apple has reportedly explored using Baidu's AI model, but technical challenges, including disputes over iPhone user data usage, have hindered progress, the report says. The lack of AI capabilities in the latest iPhones sold in China has become a notable setback for Apple, especially as domestic competitors like Huawei gain ground. Huawei re-entered the high-end market in August with a smartphone powered by a Chinese-made chip. Its latest Mate 70 series, featuring proprietary AI capabilities, has been well-received, contributing to a 42% surge in Huawei’s sales during the third quarter, compared to a 0.3% decline for Apple, according to data cited by the report
APPLE AI CHINA TENCENT BYTEDANCE HUAWEI MARKET SHARE COMPETITION
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