A senior government official has cautioned that launching Apple Intelligence in China could prove to be a “challenging and protracted endeavor,” unless Apple teams up with a domestic AI firm. Collaborating with a local company would make the process “more efficient and straightforward.”
Apple has been said to explore deploying its own generative AI models in China, but a high-ranking regulator has strongly suggested that this approach may not align with the best interests of the Cupertino-based company…
Any organization aiming to introduce a generative AI product in China must acquire regulatory approval. According to the Financial Times, the relevant regulator has provided clear expectations regarding the government’s stance.
Apple faces significant hurdles in releasing its artificial intelligence models for iPhones and other devices in China. A high-ranking official from Beijing has indicated that foreign businesses will encounter a “challenging and lengthy process” for approvals unless they form partnerships with local companies […]
The official from the Cyberspace Administration of China stated that the approval process would be considerably “easier and more straightforward” for foreign manufacturers using pre-approved LLMs (large language models, or generative AI) provided by Chinese entities.
Two sources mentioned by the FT indicated that Apple has been contemplating the use of its own LLMs in China while also engaging in discussions with local tech firms.
The Chinese government maintains strict control over online information within its borders. Google exited the market after being compelled to censor search results, while many other Western platforms, such as Facebook, X, and Wikipedia, are blocked by the Great Firewall of China. Numerous search queries are also restricted on Baidu, the local search engine.
AI products now offer another method for conducting web searches, and it is evident that the government intends to oversee this domain as well, effectively compelling foreign enterprises to utilize sanctioned Chinese-owned models.
Apple has already faced a decline in iPhone sales in China following a governmental ban on their use by officials and a propaganda campaign suggesting that buying foreign phones is unpatriotic.
A JP Morgan analyst suggested that Apple is likely to adopt a “flexible” approach to secure approval; however, the launch of Apple Intelligence in China may be postponed until the latter half of 2025.
The FT reported that Apple chose not to comment on the news.
DMN’s Perspective
While it would be commendable to think Apple would resist such pressure, the reality is that it will likely comply. China is too crucial to Apple, accounting for 17% of its worldwide sales and serving as a vital manufacturing hub.
As CEO Tim Cook noted just yesterday: “We could not do what we do without them [Chinese suppliers].”
In many instances, Apple has had to take unsavory actions, such as eliminating VPN apps and US news applications from the App Store to adhere to regulations. In this scenario, Apple could theoretically choose not to launch Apple Intelligence in China, but the commercial and political risks are probably too significant to consider this option viable.
DMN collage of images from Apple and Sean Sinclair on Unsplash
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