Apple will introduce its first foldable smartphone in China next week, and the device will incorporate Alibaba’s artificial intelligence. The phone will also bring Apple Intelligence — the company’s generative suite — to the mainland after years of regulatory delays.
Why the move matters
Apple views integrated AI features as central to its efforts to compete with Huawei, the only firm it acknowledges as outperforming it in China. The introduction of AI-powered capabilities is part of Apple’s response to shifting dynamics in China’s smartphone market, which has weakened amid lower consumer spending and rising hardware costs.
Market context and competitors
Despite an overall market slump, new domestic entrants are emerging: Chinese AI lab StepFun launched a $600 AI agent smartphone on Tuesday. One analyst described Apple’s decision to roll out a foldable device with local AI integration as “quite bold” under current conditions, noting that smartphones’ unique ability to continuously collect user data enables AI assistants to become progressively more personalized.
What to watch next
Integrating Alibaba’s AI and finally launching Apple Intelligence in China are strategic moves that could help Apple narrow the gap with Huawei and add value for Chinese users through AI features. However, weak demand and higher component costs on the market will remain headwinds for all manufacturers.
(Original article by Brendan Ruberry.)
