Apple has officially partnered with Alibaba to integrate its generative AI into iPhones in China, a move that aims to combat sliding smartphone sales in the region. According to Alibaba's chairman, Joe Tsai, this partnership is crucial for Apple to introduce segments of its Apple Intelligence suite to the Chinese market, where regulatory challenges have hindered direct collaborations with companies like OpenAI. Despite promising prospects, analysts warn that competition from domestic smartphone manufacturers such as Huawei and Xiaomi remains a significant hurdle for Apple in reclaiming market share.
"They want to use our AI to power their phones." - Joe Tsai, Alibaba's Chairman
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