Apple is ready to introduce Apple Intelligence in China this December, powered by Alibaba's Qwen model, boosting the iPhone Duo's appeal.
Revolutionizing iPhone Experience
After extensive discussions, Apple is poised to launch Apple Intelligence in China, collaborating with Alibaba’s Qwen model to enhance smartphone features. Set for release as a developer beta, this innovation will become accessible to Chinese customers in December alongside iOS 27.3.
Regulatory Approvals Secured
The Chinese government's Ministry of Industry and Information Technology approved the integration of Alibaba AI models into the iPhone back in October 2026. Previously, Apple also received approval from the Cyberspace Administration in July. This sequence of approvals highlights the complexity of introducing such tools in China. For Apple, this move arrives at a pivotal moment, as it continues to capture a growing share of the smartphone market in the country.
A Boost for the iPhone Duo
With Apple Intelligence, Apple aims to attract more interest in its latest device, the iPhone Duo. Recent data from Counterpoint Research indicates a substantial 29% year-over-year increase in iPhone sales within three weeks following the launch of the 18 Pro series. The initial supply quickly sold out, showcasing strong demand.
China currently leads the global market for foldable smartphones, creating opportunities for reselling the iPhone Duo at inflated prices. However, scalpers soon found that even in a market as enthusiastic about iPhones as China, customers were not willing to pay exorbitant prices.
What About Siri?
Interestingly, Siri AI will not be included in this launch and may not be integrated for quite some time. Speculations suggest that political pressures from both the US and China could influence this decision, as both nations prioritize control over AI technologies to secure their interests.
For Chinese consumers, Alibaba’s Qwen will offer innovative capabilities in Siri, writing, and visual intelligence, focusing on text and image processing. While the absence of Image Playground is notable, users can still look forward to several useful features.
Privacy and Consumer Choice
Apple and Alibaba assure users that privacy will be a priority. Customers can now decide whether to utilize Qwen for their requests. Alibaba has committed to not employing these requests for training their models, though the routing of these requests to Apple's Private Cloud Compute in China remains uncertain.
The Anticipated Impact
The arrival of Apple Intelligence is expected to generate renewed excitement among Chinese users. Many consumers were already aware of the incoming features through months of speculation, influencing their purchases even before the official announcement.
While initial demand for the iPhone has stabilized, the news of the impending AI launch could create another wave of enthusiasm for Apple's products in China. This momentum is favorable for Apple but poses challenges for smaller smartphone competitors, who are grappling with increased component prices.
A Pivotal Development
Analysts had anticipated an earlier launch of Apple Intelligence in China, and Morgan Stanley identified the partnership with Alibaba as a crucial factor for Apple's competitive advantage in the region. Despite persistent price pressures increasing overall smartphone costs, the introduction of Apple Intelligence is likely to enhance the iPhone's appeal during critical sales cycles.
As component prices continue to rise, many smartphone manufacturers struggle, leading to a significant year-on-year decline in the overall market. Yet, both Apple and Samsung have demonstrated resilience, meaning this new AI feature could significantly bolster Apple’s market position in the short term and enhance its competitiveness in future replacement cycles.