Alibaba Chairman Joe Tsai announced a strategic partnership with Apple on Thursday, focusing on integrating advanced AI features into iPhones sold in the Chinese market. The announcement was made during the World Governments Summit in Dubai.
The collaboration has significantly impacted Alibaba's stock, with Hong Kong-listed shares jumping over 9 percent to reach a three-year high of HK$124.3 (approximately $15.96).
For Apple, this AI integration comes at a crucial time as the company grapples with declining iPhone sales in China. The Chinese smartphone market has seen intensifying competition from domestic giants like Huawei and Vivo. In 2024, Apple lost its position as the country's leading smartphone vendor, falling to third place with a 15 percent market share, according to Canalys.
Industry analysts have highlighted the lack of advanced AI features as a key disadvantage for Apple in the competitive Chinese market. By partnering with Alibaba, Apple aims to enhance its iPhones with cutting-edge AI capabilities, potentially regaining market traction.
Alibaba has emerged as a favorite among investors in the AI sector, with its stock price increasing by over 40 percent in 2025. Earlier in the year, Alibaba introduced the Qwen 2.5 AI model, which it claims surpasses the functionality of DeepSeek-V3, a model that gained attention for its advanced capabilities and affordability.
Reference(s):
cgtn.com
