Apple Partners with Alibaba to Launch AI Services in China, AAPL Stock Rises

Apple Inc. (AAPL) is making a strategic move to boost iPhone sales in China by partnering with Alibaba (BABA) to introduce AI-powered features, according to a report from The Information. The collaboration has lifted both Apple and Alibaba stocks, while Baidu (BIDU) shares fell after being sidelined from Apple’s AI plans.

Apple and Alibaba Submit AI Features for Regulatory Approval

Apple and Alibaba have reportedly submitted their co-developed AI services for approval by China’s cyberspace regulator. This development marks a shift from Apple’s previous partnership with Baidu, which was abandoned due to dissatisfaction with Baidu’s AI models for Apple Intelligence.

Before choosing Alibaba, Apple had also evaluated AI models from Tencent (TCEHY), ByteDance, and DeepSeek. However, it ultimately decided that Alibaba’s technology best suited its needs.

Apple’s AI Push Aims to Revive Weak iPhone Sales in China

Apple has faced declining iPhone sales in China, partially due to its delayed rollout of Apple Intelligence in the region. This impacted Apple’s fiscal Q1 results and guidance, but the company now plans to introduce AI features in non-English speaking markets, including China, by April.

Stock Market Reaction: AAPL and BABA Rise, BIDU Falls

Following the news, Apple and Alibaba stocks surged:
📈 Apple (AAPL) rose 1.5% to $231.72
📈 Alibaba (BABA) climbed 2% to $113.88
📉 Baidu (BIDU) dropped over 4% to $89.82

Apple’s AI Strategy Gains Momentum

With this new AI partnership, Apple is strengthening its foothold in China, aiming to enhance iPhone sales and compete with local smartphone brands. As Apple Intelligence expands globally, its integration with Alibaba’s AI technology could play a crucial role in Apple’s future growth in the Chinese market.