Apple Receives China Approval for AI Models, to Use Alibaba and Baidu; iPhone Share Rises to 18.1%

Apple has trained a custom large language model for the Chinese market, using technology support from Alibaba Group. The arrangement makes Apple the first foreign company to receive Beijing's approval to offer proprietary AI models in China. Previously, Apple had planned to rely solely on third-party Chinese models, but this arrangement adjusts that strategy. OpenAI's ChatGPT and Anthropic's Claude are paired with Apple's technology in Western markets but are not available in China.

In July, China's Cyberspace Administration formally registered Apple's generative AI service, removing a major regulatory barrier that had prevented Apple Intelligence from launching on devices in the country. Under the approved framework, Alibaba's Qwen model will be integrated into Apple Intelligence and applied to compatible iPhone, iPad, Mac, and Vision Pro devices sold in China. Baidu's technology will separately support search-related functions. The task allocation between Apple's proprietary model, Qwen, and Baidu has not yet been disclosed, and technical details remain unpublished.

China is a significant market for Apple. Second-quarter data showed Apple's smartphone share in the country rose to 18.1% from 13.9% a year earlier, with shipments growing 24.4%—the highest increase among all major brands—lifting Apple from fifth place to second. Huawei led with a 22.6% share. Over the same period, overall smartphone shipments fell 4.3% to about 66 million units, marking a fifth consecutive quarter of decline. Apple's share gain partly reflected stable pricing on the iPhone 17, while Android rivals raised prices. Additionally, Apple hinted at price increases in the second half, which spurred early demand, but such factors only affected the single quarter's data and did not establish a longer-term trend.

While Apple awaited regulatory approval, domestic competitors had already launched on-device generative AI features. Apple has not publicly confirmed the arrangement; all confirmations have come from Alibaba, Baidu, or regulatory filings. A specific launch date for mainland China has not been announced.