- Apple is looking to integrate AI in iPhones sold in China via local partnerships, Reuters reported.
- Regulatory barriers in China mean Apple is required to partner with domestic AI companies.
- Apple has faced increasing local competition in one of its key markets.
Apple is in early-stage talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China, Reuters reported.
The move could be a way for Apple to introduce AI to mobile devices in China after the country blocked its rollout of Apple Intelligence.
The tech giant started releasing some Apple Intelligence features in the US in October. However, Apple must partner with domestic AI companies to deliver the new features in China while complying with local rules.
Apple has yet to roll out the full suite of Apple Intelligence features planned for its iPhones. So far, the company has introduced a limited number of functions, including a feature that uses OpenAI's ChatGPT for Apple's Siri voice assistant.
Apple CEO Tim Cook said in a recent earnings call that the company plans to roll out more AI features in April.
Representatives for Apple did not immediately respond to a request for comment from Business Insider, made outside normal working hours.
Apple has also discussed partnering with Baidu to roll out AI features on iPhones in China, but technical disagreements reportedly stalled progress, The Information reported in early December.
It comes as Apple attempts to fight off increasing competition from local brands like Huawei and Xiaomi. The company has had a rough time in one of its key markets and missed its sales estimates in Greater China last quarter.
Apple hopes the AI features will encourage consumers to upgrade to new iPhones that support the technology. While some analysts have predicted that the iPhone 16 would drive a massive upgrade cycle, others have been enthusiastic about the idea.