Latest news with #JosephTsai
India Today
4 days ago
- Business
- India Today
Apple and Alibaba AI plan is stalled, report says China going easy on approval because of tariff tension
Apple's plan to bring AI iPhone features (via Apple Intelligence) to its phones in China have hit a roadblock. A report from the Financial Times says the launch of these services, developed in partnership with Chinese tech giant Alibaba, is being delayed by Beijing's internet regulator, the Cyberspace Administration of China (CAC). The delay reportedly stems from rising tensions between the United States and China, with ongoing trade pressures complicating cross-border tech partnerships. The FT report reveals that the CAC has not yet approved the AI rollout due to these growing geopolitical had announced in February that it was working with Apple to bring Apple Intelligence – its AI-powered toolset – to iPhones sold in China. The company had to take this route because ChatGPT, which powers Apple Intelligence features elsewhere, is banned in China. Partnering with Alibaba was expected to help Apple meet local laws while still offering AI features in the country. 'They talked to a number of companies in China. In the end, they chose to do business with us,' said Alibaba chairman Joseph Tsai at the time. 'We feel extremely honoured to do business with a great company like Apple.'Reports also suggest that Apple is collaborating with Baidu on visual AI and an AI-powered search tool that could even support a China-specific version of Siri. However, none of these partnerships have received final In the Apple and Alibaba partnership (whenever it takes shape), Alibaba's role will not be to run the AI models but to act as a content filter layer on top of Apple's systems, to comply with China's strict regulations. Baidu, on the other hand, is said to be responsible for powering actual AI features, similar to how OpenAI or Google supports AI on iPhones in other these partnerships were expected to go live by May 2025, approval delays are now casting doubt on that timing is especially difficult for Apple, which is facing falling iPhone sales in China. In 2024, the company saw a 17 per cent drop in shipments, which was its worst performance in the Chinese market since 2016. That decline allowed competitors like Huawei, Xiaomi and Vivo to overtake Apple in smartphone sales. By the fourth quarter of 2024, Apple had slipped to third place in China. A key reason for the decline is believed to be the absence of advanced AI features on iPhones in China. Many Android phones already offer these tools, putting Apple at a clear the challenge, former US President Donald Trump recently said that Apple would face a 25 per cent tariff on iPhones sold in the US if they aren't made domestically, which is another point of friction likely contributing to regulatory delays in is expected to showcase new software features at its Worldwide Developers Conference (WWDC 2025) between June 9 and June 13. Reports suggest that at the event, AI will take a backseat and Apple will likely just concentrate on announcing software updates. Tune In
Yahoo
19-05-2025
- Business
- Yahoo
Alibaba Tumbles as Apple AI Pact Faces Scrutiny
Apple's (NASDAQ:AAPL) AI pact sends Alibaba (NYSE:BABA) shares skidding after US scrutiny, The New York Times reports. BABA plunged as much as 4.8% in Hong Kong on Mondayleading the Hang Seng China Enterprises Index lowerafter the White House flagged Alibaba's planned deal to embed its AI on Apple's iPhones in China. That drop compounds pressure on Alibaba, whose quarterly revenue recently came in below consensus as iPhone sales in China slid 2.3% in the quarter ended March 29. The proposed partnership, first announced by Alibaba Chairman Joseph Tsai in February, would have Alibaba's AI powering Siri-style features on iPhones sold within China's tightly regulated market. Apple has been exploring similar tie-ups with Baidu (NASDAQ:BIDU) and even weighed deals with ByteDance, Tencent (TCEHY) and startup DeepSeekbefore ruling DeepSeek out for lack of scale. U.S. officials fear the arrangement could expose sensitive data or bolster a Chinese firm's global ambitions, potentially derailing Apple's broader AI rollout. For Alibaba, this latest regulatory headwind comes amid a broader slowdown: revenue growth has decelerated as the company grapples with stiff competition from Xiaomi (XIACF), Huawei and a softening e-commerce environment. The stock's recent 15% drawdown from its year-to-date peak underscores investor unease around regulatory risk and execution challenges in its core markets. Why It Matters: A stalled AI partnership with Apple could delay Alibaba's push into high-margin services, while raising fresh doubts about tech cooperation and Alibaba's near-term growth outlook. Analyst sentiment on Alibaba Group Holding is showing subtle strain. While the total number of ratings edged up to 44, the number of Underperform calls jumped to 7more than triple the previous months. At the same time, Buy ratings dipped to 14, their lowest in five months. This shift suggests growing caution despite a still-broad base of support. 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
Yahoo
19-05-2025
- Business
- Yahoo
Alibaba Tumbles as Apple AI Pact Faces Scrutiny
Apple's (NASDAQ:AAPL) AI pact sends Alibaba (NYSE:BABA) shares skidding after US scrutiny, The New York Times reports. BABA plunged as much as 4.8% in Hong Kong on Mondayleading the Hang Seng China Enterprises Index lowerafter the White House flagged Alibaba's planned deal to embed its AI on Apple's iPhones in China. That drop compounds pressure on Alibaba, whose quarterly revenue recently came in below consensus as iPhone sales in China slid 2.3% in the quarter ended March 29. The proposed partnership, first announced by Alibaba Chairman Joseph Tsai in February, would have Alibaba's AI powering Siri-style features on iPhones sold within China's tightly regulated market. Apple has been exploring similar tie-ups with Baidu (NASDAQ:BIDU) and even weighed deals with ByteDance, Tencent (TCEHY) and startup DeepSeekbefore ruling DeepSeek out for lack of scale. U.S. officials fear the arrangement could expose sensitive data or bolster a Chinese firm's global ambitions, potentially derailing Apple's broader AI rollout. For Alibaba, this latest regulatory headwind comes amid a broader slowdown: revenue growth has decelerated as the company grapples with stiff competition from Xiaomi (XIACF), Huawei and a softening e-commerce environment. The stock's recent 15% drawdown from its year-to-date peak underscores investor unease around regulatory risk and execution challenges in its core markets. Why It Matters: A stalled AI partnership with Apple could delay Alibaba's push into high-margin services, while raising fresh doubts about tech cooperation and Alibaba's near-term growth outlook. Analyst sentiment on Alibaba Group Holding is showing subtle strain. While the total number of ratings edged up to 44, the number of Underperform calls jumped to 7more than triple the previous months. At the same time, Buy ratings dipped to 14, their lowest in five months. This shift suggests growing caution despite a still-broad base of support. 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
Business of Fashion
15-05-2025
- Business
- Business of Fashion
Alibaba's Growth Fails to Impress in Dour Note for China Tech
Alibaba Group Holding Ltd.'s quarterly revenue grew a disappointing 7 percent, reflecting a persistent Chinese consumer malaise that may dog the online commerce leader's big pivot toward AI. The company reported sales of 236.5 billion yuan ($32.8 billion) for the March quarter, versus an average estimate of 237.9 billion yuan. Net income almost quadrupled, though that was partly because of gains from equity investments. Its shares fell more than 6 percent in pre-market trading. Alibaba, a barometer of the Chinese consumer economy because of its sprawl, posted better-than-expected growth in domestic retail after Beijing issued a plethora of incentives to counter US tariffs. But the overall miss stood out after rivals Tencent Holdings Ltd. and Inc. both reported their fastest top-line expansions in years, stoking hopes of a Chinese tech sector revival after years of stagnation. Alibaba itself had been counting on a bounceback in its online commerce business to support an ambitious post-DeepSeek bet on artificial intelligence. Chief executive officer Eddie Wu and chairman Joseph Tsai — two of co-founder Jack Ma's most trusted lieutenants — took the helm in 2023 and are orchestrating Alibaba's comeback from years of government scrutiny. They've refocussed spending on building AI and e-commerce, while accelerating the unloading of non-core assets to bankroll AI investments and an international expansion. The company has pledged more than 380 billion yuan toward AI infrastructure such as data centres over the next three years. Wu declared in February the company's primary objective is now attaining artificial general intelligence — putting it on par with the likes of OpenAI. Alibaba has been releasing AI products at a frenetic pace since DeepSeek's emergence on the global stage this year. Alibaba said its Qwen 3 flagship model, unveiled just last month, rivals DeepSeek's performance on several fronts. On Wednesday, the company updated its video-generating model for the second time in a month. But it's facing intense competition from Chinese AI rivals including Baidu Inc. and Tencent. Globally, Tsai has warned of an AI bubble, cautioning that data centres are being built in the US without clear customers in mind. What Bloomberg Intelligence Says The continued uplift from narrower local services losses and jump in cloud earnings should have more than offset international digital commerce's shortfalls for a second straight quarter. Profit from Taobao-Tmall group (TTG) probably also rose year-over-year as the firm's push for higher gross merchandise value through the joint utilisation of tools within its ecosystem spurred higher customer management revenue. Yet cost hikes could have surpassed revenue gains to lower TTG's 4Q adjusted Ebita margin from a year earlier. - Catherine Lim and Trini Tan, analysts The e-commerce business is also facing growing competition from ByteDance Ltd. and PDD Holdings Inc. In an effort to fend off and PDD, Alibaba said last week it will partner with the Instagram-like Xiaohongshu for Taobao and Tmall merchants to embed product links on the popular influencer platform. Beyond China, Alibaba's international commerce division grew revenue 22 percent — but that slowed from the previous quarter and also missed analysts' projections. For now, Beijing is helping keep the industry afloat, with incentives to buy everything from appliances to smartphones and cars. In May, policymakers announced a slew of stimulus measures including monetary policy easing. By Claire Che and Luz Ding Learn more: Chinese E-Commerce Giants' Discounting Spree Hits Consumer Brands Chinese e-commerce giants Alibaba and have faced increasing competition in recent years from low-cost platforms, such as PDD Holding's Pinduoduo and ByteDance-owned Douyin.
Straits Times
15-05-2025
- Business
- Straits Times
China's Alibaba misses estimates, souring hopes of consumer revival
Alibaba faces intense competition from AI rivals like Tencent, while its e-commerce business is also challenged by the likes of Bytedance. PHOTO: REUTERS BEIJING – Alibaba Group's quarterly revenue missed projections, reflecting a persistent Chinese consumer downturn as well as intense rivalry in the critical field of AI. Revenue for the three months ended March rose 7 per cent to 236.5 billion yuan (S$42.6 billion), versus an average estimate of 237.9 billion yuan. Net income almost quadrupled to 12.4 billion yuan in part because of gains from equity investments. Its shares fell more than 6 per cent in pre-market trading. Alibaba, a barometer of the Chinese consumer economy because of its sprawl, had benefited from government subsidies intended to shield the world's No. 2 economy from a global trade war. Alibaba had been counting on a bounceback in its online commerce business to support a post-DeepSeek pivot to AI. CEO Eddie Wu and Chairman Joseph Tsai – two of co-founder Jack Ma's most trusted lieutenants – took the helm in 2023 and are orchestrating Alibaba's comeback from years of government scrutiny. They've refocused spending on building AI and e-commerce, while accelerating the unloading of non-core assets to bankroll AI investments and an international expansion. The company has pledged more than 380 billion yuan toward AI infrastructure such as data centres over the next three years. Mr Wu declared in February the company's primary objective is now attaining artificial general intelligence – putting it on par with the likes of OpenAI. Alibaba has been releasing AI products at a frenetic pace since DeepSeek's emergence on the global stage this year. Alibaba said its Qwen 3 flagship model, unveiled just last month, rivals DeepSeek's performance on several fronts. On yMay 14 the company updated its video-generating model for the second time in a month. But it is facing intense competition from Chinese AI rivals including Baidu and Tencent. Globally, Mr Tsai has warned of an AI bubble, cautioning that data centres are being built in the US without clear customers in mind. The continued uplift from narrower local services losses and jump in cloud earnings should have more than offset international digital commerce's shortfalls for a second straight quarter. Profit from Taobao-Tmall group (TTG) probably also rose year-over-year as the firm's push for higher gross merchandise value through the joint utilisation of tools within its ecosystem spurred higher customer management revenue. Yet cost hikes could have surpassed revenue gains to lower TTG's fourth quarter adjusted Ebita margin from a year earlier. The e-commerce business is also facing growing competition from ByteDance and PDD. In an effort to fend off and PDD, Alibaba said last week it will partner with China's Instagram-like Xiaohongshu for Taobao and Tmall merchants to embed product links on the popular influencer platform. For now, Beijing is helping keep the industry afloat, with incentives to buy everything from appliances to smartphones and cars. In May, policymakers announced a slew of stimulus measures including monetary policy easing. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
