A Reuters report indicates that Apple plans to work together with Chinese firm Alibaba for the development of Apple Intelligence artificial intelligence features in China.
Apple plans to fight its way back into China's AI market through collaboration with Alibaba following its decreasing market share to Huawei since Huawei added superior AI features to their mobile phones one year ago.
Apple failed to implement Apple Intelligence through intermediaries in China until it found success with its collaboration with Alibaba. The stock values of Apple increased by 1.5% during early trading hours followed by a 2.6% surge in Alibaba's United States listed shares.
In December 2019 Apple negotiated terms with Baidu for a deal which failed because of technical along with philosophical privacy concerns. The agreement between Apple and Baidu to use user data for performance enhancement failed when Apple denied the access request and Baidu produced answers that were inadequate for normal iPhone users.
Following the unsuccessful collaboration attempt Apple reviewed AI models from Tencent and ByteDance alongside Alibaba and DeepSec until they passed on DeepSec because it required additional human resources to assist their new significant client.
Sales of iPhones decreased during the holidays that usually generate maximum revenue for Apple due to the absence of expected AI tools in their newest products.
Sales projections for the upcoming quarter from Apple point to probable Apple iPhone market demand recovery. According to The Information Apple decided to collaborate with Alibaba because the e-commerce giant has massive user data about shopping behavior allowing the company to develop personalized models and services.
