Apple is fighting to stay relevant in China and AI may be its biggest weapon

Apple's China problem is not simply that its AI features arrived late. The bigger issue is that local smartphone makers have been moving quickly to make AI a visible part of the phone experience.

Huawei and other Chinese brands have been adding AI assistants and other intelligent features to their devices, giving consumers reasons to look beyond the iPhone. Apple, meanwhile, has been unable to offer Apple Intelligence on Chinese iPhones while it worked through regulatory requirements.

What Happened

That puts Apple in an uncomfortable position. It is competing against companies that can move quickly with locally developed AI while its own AI rollout has been held back by the rules governing generative AI in China.

• The Apple-Alibaba relationship dates back to February 2025, when Alibaba chairman Joe Tsai confirmed that the two companies were working together.

• That explains why the company appears willing to pursue a more complicated AI strategy: Alibaba and other Chinese partners can help Apple navigate the local market, while Apple's own model could give it greater.

• It could help Apple make its devices feel competitive again.

Key Details

This is why Apple's latest move is important. A China-specific model could allow Apple to have greater control over the AI experience while also giving it more room to adapt its features to local requirements.

• Getting Apple Intelligence into China could therefore do more than add new functionality to the iPhone.

• The company has been under pressure from domestic smartphone brands, while the lack of Apple Intelligence has made the iPhone look increasingly behind the curve in a market where AI features are becoming a.

• China remains too important a market for Apple to treat AI as an optional extra.

Why It Matters

Instead of simply taking an existing model and putting it into an iPhone, Apple can potentially build the technology around the needs and restrictions of the Chinese market. Apple's decision to develop its own model does not mean it is walking away.

• China's Cyberspace Administration recently registered Apple's generative AI service, clearing a major hurdle for Apple Intelligence to finally reach Chinese users.

• That process appears to have reached an important milestone.

What Reports Say

Coverage of the story so far points to:

• Continued reporting by India Today as more details emerge