Apple’s ambitious plans to implement artificial intelligence features on iPhones in China have encountered significant regulatory hurdles, with Beijing officials signalling a complex approval process ahead for foreign companies operating independently.
Tim Cook’s third visit to China this year comes at a crucial time as the tech giant navigates the intricate regulatory landscape. The company’s efforts to introduce Apple Intelligence to Chinese devices has led to discussions with local tech powerhouses, highlighting the challenging path ahead for foreign entities in China’s AI space.
A senior official from the Cyberspace Administration of China has indicated that foreign companies like Apple would face a “difficult and long process” for approval unless they collaborate with local partners. The regulatory body has suggested that utilising pre-approved large language models from Chinese companies would result in a more streamlined approval process.
The stakes are particularly high for Apple, as China represents its largest market outside the United States, contributing 17% of its revenue in the previous fiscal year. The company has experienced an 8% decline in Chinese sales, facing additional pressure from state-led initiatives discouraging iPhone usage among government employees and growing competition from domestic rival Huawei.
Sources familiar with the matter reveal that Apple has engaged in discussions with prominent Chinese tech firms, including Baidu, ByteDance, and Moonshot, potentially seeking partnerships to power their AI features in the region. These collaborations could be crucial for Apple’s strategy to maintain its market position while complying with local regulations.
Industry analysts suggest that Apple’s AI rollout in China might be delayed until the second half of 2025 or beyond, reflecting the complexity of the regulatory environment and the necessity for strategic partnerships with local entities. The company’s approach to this challenge will likely shape its future success in one of its most critical markets.
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