Alibaba to Partner with Apple on AI Features, Shares Hit 3-Year High

🤝 Alibaba Partners with Apple on AI Features, Sending Shares to a 3-Year High

📢 A Major Win for Alibaba in China’s AI Market

Alibaba has announced a partnership with Apple to provide AI-powered features for iPhones in China. This strategic move comes as Apple faces declining smartphone sales in one of its key markets.

🚀 For Alibaba, this collaboration solidifies its position in China’s highly competitive AI industry, where companies like DeepSeek have made headlines for developing cost-effective AI models rivaling Western technologies.

📌 Key Highlights of the Partnership

• 📱 Alibaba’s AI to Power iPhones in China – Apple will integrate Alibaba’s AI into iPhone services.
• 🏆 Alibaba Selected Over Baidu, ByteDance & Tencent – Apple was reportedly in discussions with multiple Chinese AI firms before finalizing Alibaba.
• 📜 Regulatory Compliance – Both companies have submitted their AI models for government approval.

💬 Official Statement on the Partnership

Alibaba Chairman Tsai, speaking at the World Government Summit in Dubai, confirmed:

💡 "They [Apple] talked to a number of companies in China. In the end, they chose us. They want to use our AI to power their phones. We feel extremely honored to do business with a great company like Apple."

📈 Alibaba Shares Hit a 3-Year High

The news triggered a surge in Alibaba’s stock, with its Hong Kong-listed shares jumping as much as 9.2% to HK$124.3, the highest since January 2022. By the end of trading, the stock closed up 2.6%.

🏆 Why This Deal Matters for Apple

📉 Apple has been struggling in China due to declining iPhone sales. The absence of advanced AI features, a major selling point in modern smartphones, has put Apple at a disadvantage.

📊 Apple’s Market Performance in China:

• 📉 11% revenue decline in Greater China for Q1 FY2025, down to $18.51 billion.
• 📦 Annual shipments fell by 17%, dropping Apple to third place in market share.
• 📊 Market leader: Vivo (17%), followed by Huawei (16%), with Apple now at 15%.

💡 Analysts Weigh In

Lian Jye Su, Chief Analyst at Omdia, remarked:

📝 "This is more about recognizing Alibaba’s AI capability rather than just a reflection of China’s AI strength."

Will Wong, IDC Analyst, noted:

💬 "Apple’s success will depend on how quickly it integrates AI features into its ecosystem, as local competitors are aggressively marketing their own AI advancements."

⚡ Alibaba’s Rising AI Dominance

Alibaba has emerged as an AI leader in China, with its stock rising over 40% in 2025. In late January, the company unveiled Qwen 2.5, an upgraded AI model that it claims outperforms DeepSeek-V3.

📅 What’s Next?

🔜 Apple’s AI rollout in China is expected to accelerate in the coming months as regulatory approvals are finalized.

📢 Keywords & SEO Highlights:

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