Reports that Apple Inc (NASDAQ:AAPL, ETR:APC) is partnering with Alibaba Group (NYSE:BABA) to bring AI features to Chinese iPhone users have been welcomed as a positive development for the company by analysts at Bank of America.
The Information earlier this week reported that Apple and Alibaba co-developed Chinese AI features and have submitted them to China’s cyberspace regulator for approval.
Analysts said the update shows Apple’s desire to quickly launch AI features in China, a region where revenues have been falling for six consecutive quarters as its rivals Huawei and Xiaomi gain market share.
“On Apple’s fiscal first quarter 2025 earnings call, CEO Tim Cook noted that markets with Apple Intelligence on iPhones were outperforming markets where it is not yet available, highlighting Apple’s desire for a global rollout of the feature,” they wrote in a note to clients.
“We believe Apple can regain share in the Chinese market if they are able to launch Apple Intelligence successfully to compete with Huawei/Xiaomi’s currently available AI offerings.”
Currently Apple Intelligence is currently available on iPhones in the United States, Australia, Canada, New Zealand, South Africa and the UK. It is also available on Mac OS in the EU, with core features set to rollout in iPhone and iPad in April.
The analysts highlighted Apple’s plans to release additional languages including French, German, Italian, Portuguese, Spanish, Japanese, Korean, English for Singapore and India, and Simplified Chinese.
“Presumably, with the release of these new languages, Apple Intelligence will roll out on iPhones in the corresponding countries (except for China),” they wrote. “When asked, Apple noted the Chinese language rollout is targeted for Chinese speakers outside of China and did not indicate any pending rollout for China.”
Bank of America repeated its ‘Buy’ rating on Apple and $265 price target. Shares traded hands at $240 at midday on Thursday.
