publive-image

Apple Plans to Conquer the Chinese Market: Emulating Samsung's Success

Apple is in preliminary talks with Chinese technology giant Baidu and is reportedly looking for a partnership that could use Baidu's generative artificial intelligence technology for Apple devices in China.

The move is part of Apple's ongoing plans to upgrade its AI capabilities and navigate China's stringent regulations, The Wall Street Journal (WSJ) reported on Friday (March 22), citing unnamed sources branch.

China’s laws mandate that the country’s cyberspace regulators test generative AI models before they are publicly released, the report said. More than 40 generative AI models have been approved since the regulations were introduced in August, including Baidu's Ernie Bot. None of the prototypes developed by foreign companies have yet been approved, although it is not known whether some have sought approval.

While the talks between Apple and Baidu are tentative, the potential partnership underscores the growing importance of AI in the consumer electronics market, the report said. Apple is investing in developing its generative AI model to improve features like voice assistants, photo editing, and email. However, analysts point out that the company may need to be more innovative to outshine competitors in the AI space.

According to the report, Apple faces stiff competition in China, as well as in the huge overseas market, especially from domestic rivals such as Huawei Technologies. In the first six weeks of this year, iPhone sales in China fell 24%, while Huawei’s phone sales rose 64%. Apple has doubled its research and development team in China over the past five years to bolster its presence there and plans to open a new facility to research and test its products.

Apple CEO Tim Cook’s visit to China and participation in the upcoming China Development Forum highlights the company’s commitment to the Chinese market, the report said. The partnership with Baidu could help Apple eliminate the burden of compliance, compete more effectively with local competitors, and meet the growing demand for AI-enabled devices in China.

On Monday (March 18), Apple was reportedly considering integrating Google’s AI into the iPhone. Apple is in talks to license Google's Gemini AI model to power some new iPhone products that will be released this year. Apple is also reportedly in talks with OpenAI to implement their company’s AI model.

Conclusion: Apple's plan to replicate Samsung's success in China is a multi-pronged approach that combines cultural integration, strategic partnerships, increased retail sales and online presence, and investment in local talent and resources in another, emphasizing privacy and data security positions for Apple to win.