Alibaba Chairman Joe Tsai announced a strategic partnership with Apple to integrate artificial intelligence (AI) features into iPhones sold in the Chinese market. This collaboration has led Alibaba's Hong Kong-listed shares to surge by over 9 percent, reaching their highest level since January 2022.
\"They talked to a number of companies in China. In the end, they chose to do business with us. They want to use our AI to power their phones. We feel extremely honored to do business with a great company like Apple,\" Tsai stated at the World Governments Summit in Dubai.
The AI integration arrives at a pivotal moment for Apple, which has been experiencing declining iPhone sales in China due to intensified competition from domestic manufacturers, particularly Huawei. Industry analysts highlight the lack of advanced AI features as a significant drawback for Apple in the Chinese smartphone market.
In 2024, Apple saw its position as China's leading smartphone vendor diminish. According to market research firm Canalys, Apple's annual shipments in China decreased by 17 percent. Meanwhile, domestic brands Vivo and Huawei captured 17 percent and 16 percent of the market share, respectively, pushing Apple to third place with a 15 percent share.
Alibaba has emerged as a favored AI company among investors in early 2025, with its stock price increasing by over 40 percent this year. In January, Alibaba launched the Qwen 2.5 AI model, claiming it surpasses the capabilities of DeepSeek-V3, which gained attention earlier for its advanced functionality and low cost.
Reference(s):
cgtn.com
