Apple is hoping to increase iPhone sales in China, where demand has been slowing down, with its planned AI features. However, there is a catch: ChatGPT, which Siri will soon support, is prohibited in China.Earlier this month, Apple (AAPL) announced a collaboration with OpenAI to utilize the latter’s widely popular ChatGPT tool in a restricted capacity. The company also showcased its in-house technology, Apple Intelligence, which powers enticing new AI features. (ChatGPT can intervene when Siri is enabled and requires further help to respond to a query.)
The action demonstrated Apple’s efforts to advance the newest, most talked-about technology at a time when competitors in the tech space, including Microsoft, Google, Samsung, and Meta, have already established themselves with AI.
The action demonstrated Apple’s efforts to advance the newest, most talked-about technology at a time when competitors in the tech space, including Microsoft, Google, Samsung, and Meta, have already established themselves with AI. Apple might get closer with a partnership with OpenAI.
However, China was among the first nations to control the generative AI technology that underpins these well-liked businesses. The nation’s leading internet watchdog, the Cyberspace Administration of China, released new industry rules in August that mandate businesses obtain permission before deploying. As of March, the group had authorized over 100 AI models, all of which were from Chinese businesses.
A report published in the Wall Street Journal on Thursday claims that, although it hasn’t struck a deal yet, Apple is searching for a Chinese AI business to collaborate with before the iPhone is anticipated to launch in September.
A request for comment from Apple was not answered. Finding a partner is imperative, and it must happen quickly. According to market research firm IDC, Apple’s smartphone sales fell dramatically by 10% in the first quarter of this year, primarily as a result of a steep decline in iPhone sales in China. Due to rising competition, a challenging economy, nationalism, and lower sales, the corporation has lost momentum in China. The company’s second-biggest market is China.