Apple launches iPhone 15 in China, seeks local AI partner, faces competition, struggling sales.

From Quartz: 2024-06-20 13:26:00

Apple recently launched the iPhone 15 in Beijing, China, amidst plans to roll out generative artificial intelligence features later this year. However, the company is struggling in China, where iPhone sales fell by 19% in the first quarter – the worst performance since the start of the pandemic.

OpenAI’s ChatGPT, integrated into Apple’s latest devices, is not available in China, prompting Apple to seek a local AI developer to introduce its AI features in the country. Apple is facing tough competition from Chinese smartphone makers, causing a decline in their market share.

Despite declining sales, Apple remains confident in its position in China, the most competitive market globally. The company has engaged in discussions with Chinese AI developers, including Baidu and Alibaba, to navigate the challenges and regulatory requirements in the Chinese market.

In Q1 2024, Apple’s share of China’s smartphone market dropped to 15.7%, placing them behind Chinese brands like Vivo and Honor. In contrast, Huawei saw a nearly 70% increase in smartphone sales after launching its Mate 60 Pro series with an advanced Kirin 9000s chip. The U.S. Secretary of Commerce criticized the chip, labeling it as inferior to American-made chips.



Read more at Quartz: Apple looks for Chinese AI partner as it rolls out features