Apple's deal with Alibaba targets the introduction of Chinese localization for Apple Intelligence, potentially enhancing iPhone sales as they launch the more affordable iPhone SE. Regulatory approval is a prerequisite for this collaboration, with expectations for a Q2 rollout. This initiative not only focuses on hardware sales but also aims to boost the adoption of Apple’s generative AI tools. Analysts predict this may eventually lead to broader partnerships with other local Chinese AI service providers if successful.
‘Based on Apple's broader rhetoric about providing users AI choice, we could also see a scenario where Apple creates an initial AI partnership with Alibaba that eventually expands to other local Chinese cloud players over time,’ said Morgan Stanley in a client note.
This could prove a shrewd move that might yet stimulate iPhone sales there - particularly with the introduction of the more affordable iPhone SE.
Collection
[
|
...
]