Apple collaborates with Baidu for AI technology in Chinese products
Apple, the US tech giant, has chosen to collaborate with Baidu, China's premier search engine provider, to meet its artificial intelligence (AI) technology requirements. This decision comes after engaging in talks with other Chinese entities such as Alibaba Group Holding and an AI firm affiliated with Tsinghua University. The collaboration will incorporate Baidu's Ernie Bot into Apple's products, specifically tailored for the Chinese market.
Baidu's AI to drive Apple's products
Apple plans to incorporate Ernie into its iPhone 16, Mac OS, and iOS 18 goods designed for China. However, Apple will continue to utilize its proprietary AI model outside of the country. This strategic decision is reportedly due to compliance requirements for the mainland market. Official statements from both Apple and Baidu regarding this decision are yet to be released.
Baidu's stock price skyrockets
The announcement of Apple's choice to utilize Baidu's AI technology led to a significant rise in Baidu's stock price in Hong Kong. The stock experienced a notable increase of up to 6% on Monday morning and ended the day at HK$100.7, marking an overall increase of 2.55%. Official comments from either Baidu or Apple regarding these market fluctuations are still awaited.
Apple CEO reiterates dedication to China
During his recent visit to China, Apple CEO Tim Cook inaugurated a new retail outlet in Shanghai and held meetings with prominent Chinese suppliers. At a high-profile summit attended by Premier Li Qiang, Cook acknowledged the "significant contribution" made by Chinese suppliers toward Apple's carbon-neutral objectives. He also revealed plans to introduce Apple's Vision Pro mixed-reality headset in the market later this year.
Apple encounters fierce rivalry in Chinese market
Apple is grappling with a challenging market scenario in China, as iPhone sales have dropped by 24% year-on-year in the initial six weeks of 2024. This downturn is attributed to heightened competition and subdued consumer spending. A report by Counterpoint Research indicates that Apple is facing tough competition from Huawei Technologies in the premium segment, while also being pressured by competitive pricing from OPPO, Vivo, and Xiaomi.
