Apple AI tools come to China after two-year delay

“CONCESSION”

Chinese regulations require AI service providers to register with the country’s internet watchdog, and there are requirements to use local data centres and process data domestically.

Apple only secured regulatory approval in July, after reportedly holding talks with Chinese tech firms including Alibaba, Baidu, ByteDance and Tencent about partnerships on Apple Intelligence.

Major US AI firms, including Google, OpenAI and Anthropic, have either banned Chinese users or restricted access to their services, and are unlikely to secure regulatory clearance.

Working with local partners on Apple Intelligence “signifies a structural concession by Apple regarding its pricing and defining power over the AI experience in the Chinese market”, Zhang Yi, founder of research firm iiMedia, told AFP.

Apple’s delay in introducing AI tools in China was not due to lags in research and development, but rather “compliance costs”, he said.

Despite reporting a 21 per cent increase in revenue in the Greater China region, which includes Hong Kong and Taiwan, for the past quarter, Apple’s new chief executive officer John Ternus still faces significant challenges in an evolving market.

According to research firm Omdia, more than 110 million iPhones in China can support Apple Intelligence, providing a foundation for quick adoption – but competition is fierce.

“Chinese mobile phone manufacturers and internet companies are actively developing AI features and agent ecosystems,” Zhong Xiaolei, a senior analyst at Omdia, told AFP.