Latest news with #Intelligencewas
Yahoo
4 days ago
- Business
- Yahoo
Apple's China Dream Hits a Wall -- AI Deal With Alibaba Stalled by Beijing
Apple (NASDAQ:AAPL) just hit another roadblock in China. Its flagship AI productApple Intelligencewas supposed to make a splash in the world's second-largest economy through a headline partnership with Alibaba (NYSE:BABA). The plan? Power Apple's generative AI features for iPhones sold in China using Alibaba's models, skirting U.S. tech restrictions. But insiders say the project is stuck at the Cyberspace Administration of China (CAC), held back by what appears to be an increasingly cautious regulatory environment. The longer the delay drags on, the more competitive ground Apple risks losing. Warning! GuruFocus has detected 4 Warning Signs with ASAN. And that risk is real. In early 2023, Apple owned a massive 70% of China's premium smartphone market. Fast-forward to Q1 this year? That's dropped to 47%, with Huawei climbing to 35%a near full reversal. Beijing's approval process, which has already signed off on over 300 domestic AI models, seems slower when it comes to anything involving U.S. companies. Add in Trump's new tariff threats25% duties on iPhones unless Apple reshuffles its supply chainand the backdrop gets even more complicated. Sources suggest the final greenlight may rest with China's State Council, which is walking a tightrope between approving foreign partnerships and leveraging trade talks with Washington. Meanwhile, the U.S. Commerce Department has voiced concerns about the Apple-Alibaba alliance, though it lacks authority to block it outright. Alibaba's chairman Joe Tsai had confirmed the deal back in February, which briefly lifted Alibaba stock. But without regulatory clarity, Apple's AI edge in China looks shakyand its China rebound story might be running out of steam before it starts. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Apple's China Dream Hits a Wall -- AI Deal With Alibaba Stalled by Beijing
Apple (NASDAQ:AAPL) just hit another roadblock in China. Its flagship AI productApple Intelligencewas supposed to make a splash in the world's second-largest economy through a headline partnership with Alibaba (NYSE:BABA). The plan? Power Apple's generative AI features for iPhones sold in China using Alibaba's models, skirting U.S. tech restrictions. But insiders say the project is stuck at the Cyberspace Administration of China (CAC), held back by what appears to be an increasingly cautious regulatory environment. The longer the delay drags on, the more competitive ground Apple risks losing. Warning! GuruFocus has detected 4 Warning Signs with ASAN. And that risk is real. In early 2023, Apple owned a massive 70% of China's premium smartphone market. Fast-forward to Q1 this year? That's dropped to 47%, with Huawei climbing to 35%a near full reversal. Beijing's approval process, which has already signed off on over 300 domestic AI models, seems slower when it comes to anything involving U.S. companies. Add in Trump's new tariff threats25% duties on iPhones unless Apple reshuffles its supply chainand the backdrop gets even more complicated. Sources suggest the final greenlight may rest with China's State Council, which is walking a tightrope between approving foreign partnerships and leveraging trade talks with Washington. Meanwhile, the U.S. Commerce Department has voiced concerns about the Apple-Alibaba alliance, though it lacks authority to block it outright. Alibaba's chairman Joe Tsai had confirmed the deal back in February, which briefly lifted Alibaba stock. But without regulatory clarity, Apple's AI edge in China looks shakyand its China rebound story might be running out of steam before it starts. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
