Search results for: “China”

  • Apple and Alibaba join forces for AI in China

    Apple and Alibaba join forces for AI in China

    Apple has decided to team up with Alibaba to introduce AI features on iPhones in China, ending a period of guesswork about how Apple would handle AI in the Chinese market.

    iPhone 16 Apple intelligence

    Joe Tsai, Alibaba’s chairman, shared this news at the World Government Summit in Dubai. He said, “Apple looked at several companies in China. In the end, they decided to work with us. They want our AI to enhance their phones. We are thrilled to collaborate with a company like Apple.”

    Following this announcement, Alibaba’s shares jumped by as much as 8.6%. This was after a report from The Information confirmed that Apple was indeed teaming up with Alibaba to launch AI features in China. Due to local laws, Apple has not yet introduced all its AI capabilities in China without a local partner.

    Outside China, Apple devices utilize a mix of Apple’s own AI tech and OpenAI’s ChatGPT for their AI functions. Both companies have reportedly sent the necessary paperwork to Chinese authorities for the go-ahead.

    This partnership announcement comes after news that Apple had initially considered another Chinese AI firm, DeepSeek, but chose not to proceed. It was also revealed that Apple had looked at Baidu last year, but found their AI technology lacking for Apple’s standards.

    This move is significant for Apple, especially after facing a tough year in China in 2024 when it lost its spot as the leading smartphone seller. According to Canalys, Apple saw a 17% drop in shipments in China, allowing local brand Vivo to take the top spot. This partnership with Alibaba could be a strategic move to regain ground in this important market.

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  • Apple might get checked by China over App Store rules

    Apple might get checked by China over App Store rules

    Apple could soon face an investigation in China about how it runs its App Store, according to Bloomberg. A black and white image of the Chinese flag with the Apple logo in the background. China’s market watchdogs have been looking into Apple’s practices since last year. They’re concerned about the 30% fee Apple charges for in-app purchases and how the company doesn’t allow other payment options, sources told Bloomberg.

    The focus is on whether these high fees are fair to Chinese app makers. There’s also worry that by not letting other app stores or payment methods in, Apple might be hurting competition and not giving Chinese users the best deal. If Apple doesn’t change its ways, China might officially look into it, the sources added.

    This all started because of ongoing disagreements with big Chinese companies like Tencent and ByteDance. There was a report in August saying Apple was pushing these companies to change how their apps work in China to stop them from dodging that 30% fee.

    The timing is tricky because things are tense between the US and China. Just this week, China started looking into Google’s business practices right after new US taxes on Chinese products began. Apple has a lot at stake in China. It’s where most iPhones are made, and it’s a huge market for Apple outside the US. But local companies like Huawei are getting stronger, and Apple’s sales in China dropped by 11% over the holiday season. Apple has faced similar issues in other places too. They’ve had to change how they do business in places like Europe to follow new laws and avoid penalties.

    Note: Discussions about this topic can be found in our Politics section on the forum. You can read the thread, but you need to have made at least 100 posts to join the conversation.

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  • How China rescued Apple but now controls its future

    How China rescued Apple but now controls its future

    A new book titled “Apple’s Chinese Dilemma” is set to reveal how a clever decision made back in 1996 has now put the tech giant at the mercy of an authoritarian government. Subtitled “How the World’s Leading Company Got Caught,” this book compiles insights from over 200 former Apple executives and engineers. It serves both as a history lesson and a warning to others…

    We’ve been talking about how Apple’s relationship with China has become more complicated:

    First, there’s the danger of relying too much on one country. For example, the start of the COVID-19 crisis in China showed how quickly manufacturing can be affected. Events like natural disasters or political changes can disrupt business, so it’s smart to spread out manufacturing. Second, the relationship between the U.S. and China has always been rocky. The trade battles during the Trump era were especially bad, but even now, there’s always a chance that trade could be disrupted.

    Third, being closely tied to China is hurting Apple’s image because of human rights issues there. Apple has to follow local laws, which can go against what the company stands for. Written by a journalist from the Financial Times, “Apple’s Chinese Dilemma” is due out from Simon & Schuster in May. It gives an insider’s look at how Apple helped make China a powerhouse in electronics but ended up trapped by its own success.

    Apple is not just any brand; it’s the world’s most valuable company, known for the iPhone that changed how we live, work, and connect. Yet, Apple is now in a tricky spot between two superpowers. When Apple was nearly broke in 1996, it decided to move its manufacturing overseas. After trying out eight countries, China’s offer of cheap, plentiful labor drew nearly all of Apple’s production there. As the iPod and iPhone took off, this relationship with China grew deep, helping Chinese manufacturers learn skills that are now used against Western companies.

    “Apple’s Chinese Dilemma” traces how a company that once celebrated “rebels” and “troublemakers” has become silent and compliant under increasing control from China.

    Early reviews of the book have been glowing:

    • “A fantastic story, brilliantly shared” – Peter Frankopan, Oxford’s Global History Professor and author of “Silk Roads”
    • “More than just a page-turner; it’s an essential read.” – Robert D. Kaplan, author of “The Revenge of Geography”
    • “A deep dive that’s both unsettling and illuminating.” – Chris Miller, author of “Chip War”
    • “McGee illustrates how Apple’s chase for profit in China might undermine its own future and America’s tech leadership.” – Rana Foroohar, author of “Makers and Takers”
    • “A vivid account of how Apple won China but lost its essence.” – Isaac Stone Fish, author of “America Second”
    • “A must-read for every iPhone user, but a risky one for Apple staff.” – Geoffrey Cain, author of “Samsung Rising” and “The Perfect Police State”

    “Apple’s Chinese Dilemma” will hit the shelves on May 13 and is available for pre-order now.

  • Apple drops to third in China’s smartphone market due to declining sales

    Apple drops to third in China’s smartphone market due to declining sales

    Apple has seen a big drop in iPhone sales in China, moving from the top spot to third place in the last three months of 2024. According to a report from Counterpoint Research, iPhone sales in China decreased by 18.2% compared to the previous year in the fourth quarter of 2024.

    This left Apple with a 17.1% share of the market, behind Huawei with 18.1% and Xiaomi with 17.2%. Just a year before, Apple was leading with a 19% share. This is the first time since the U.S. banned Huawei that Apple has been outranked by a Chinese company.

    Several reasons explain Apple’s struggles in China. One is the tough competition from local brands, and another is that Apple’s new “Apple Intelligence” feature, launched with the iPhone 16 in September 2024 in the U.S., isn’t available in China because of local laws.

    Apple might work with Chinese companies to offer these features later. Meanwhile, Huawei has done well, growing by 15.5% thanks to AI in their Mate 70 and Nova 13 phones. The overall smartphone market in China also shrank by 3.2% in the same quarter, being the only period in 2024 with less growth.

    Despite this, Apple held onto third place, with sales figures close to Xiaomi’s.

  • Apple’s Lunar New Year Push: A sign of the times in China’s competitive market?

    Apple’s Lunar New Year Push: A sign of the times in China’s competitive market?

    The air crackles with anticipation as the Lunar New Year approaches, and this year, something unexpected has joined the festive atmosphere: Apple is offering significant discounts on its latest products in China. From January 4th to 7th, Chinese consumers can snag deals on everything from the cutting-edge iPhone 16 Pro Max to MacBooks, iPads, Apple Watches, AirPods, and even the Apple Pencil. This move, offering savings of up to roughly $70 on the premium iPhone 16 Pro Max, has raised eyebrows and sparked conversations about Apple’s strategy in a crucial market.

    Normally, Apple shies away from discounting its newest iPhone models. Think Black Friday in the US – new iPhones are conspicuously absent from any direct price reductions. This makes the current promotion in China particularly noteworthy. It’s not unprecedented; Apple has occasionally run similar Lunar New Year promotions in the past, but the timing and the scale of the discounts on the iPhone 16 lineup feel different this time.

    Several factors contribute to this unique situation. Firstly, investor scrutiny surrounding iPhone demand in China has intensified. Rumors of softening sales have circulated, prompting questions about Apple’s ability to maintain its market share against increasingly competitive domestic brands, most notably Huawei. This Lunar New Year sale could be interpreted as a strategic move to stimulate sales and reassure investors.

    Secondly, the Chinese smartphone market is fiercely competitive. Local brands have been steadily gaining ground, offering feature-rich devices at often lower price points. This intensifying competition has undoubtedly put pressure on Apple’s market share. Recent financial reports reflect this trend; Apple’s reported revenue in China decreased by 3% year-over-year last quarter. This decline underscores the challenges Apple faces in navigating the complex dynamics of the Chinese market.

    The discounts are available for purchases made directly through Apple using select payment methods popular in China, such as WeChat Pay and Alipay. This streamlined approach ensures a smooth and convenient shopping experience for Chinese consumers.

    The timing of this promotion is also significant, coming just ahead of Apple’s upcoming earnings report for the holiday quarter. This report will provide a crucial snapshot of the iPhone 16’s performance in the market and offer valuable insights into Apple’s overall financial health. The Lunar New Year sales figures will undoubtedly be closely scrutinized by analysts and investors alike.

    This Lunar New Year promotion isn’t just about offering discounts; it’s a strategic maneuver in a complex and evolving market. It’s a signal that Apple is acutely aware of the competitive landscape in China and is willing to adapt its strategies to maintain its position. Whether this promotion will significantly impact long-term sales and market share remains to be seen.

    However, it undoubtedly adds an intriguing layer to the ongoing narrative of Apple’s presence in one of the world’s most important technology markets. It’s a delicate balancing act – appealing to consumers with attractive offers while maintaining the premium image associated with the Apple brand. The coming months will reveal the true impact of this strategic play.

  • New tariffs increase US laptop prices, but Apple keeps prices steady

    New tariffs increase US laptop prices, but Apple keeps prices steady

    The recent 10% tariff on goods from China, introduced by President Trump, is beginning to impact prices in the United States. This tax has to be paid by American businesses or passed on to consumers, forcing companies to decide whether to increase product prices or reduce their profits.

    Acer, a major player in the laptop market, has decided to raise its prices by 10%. Jason Chen, the company’s CEO, explained that the price hike is an unavoidable response to the new import tax. This change will affect laptops made in China, with the new prices set to take effect next month. “We must adjust the price for consumers to reflect this tariff,” Chen stated, indicating that a 10% increase is likely.

    Despite campaign promises from Trump that tariffs wouldn’t affect consumer prices, there’s now an acknowledgment that costs could indeed rise. For those looking to buy items from China, it might be wise to do so soon, as many companies still have stock bought before the tariff was implemented, which they can sell at current prices.

    In the U.S., nearly 80% of laptops come from China, and the Consumer Technology Association warns that these tariffs could add up to $143 billion to the cost for American consumers, potentially leading to lower sales. This association counts Apple as one of its key members.

    Acer is contemplating shifting some of its manufacturing out of China, though significant barriers make this challenging. There’s also talk of possibly manufacturing in the U.S., but this seems more like a political gesture since another Trump tariff could impose up to a 100% tax on imported components.

    Meanwhile, Apple has not yet adjusted its prices, choosing to absorb the tariff costs for the time being. This decision might not last, as they will eventually have to decide between increasing prices or accepting lower profit margins in the U.S. market.

  • Apple might call new iPhone ‘iPhone 16E’ not ‘iPhone SE 4’

    Apple might call new iPhone ‘iPhone 16E’ not ‘iPhone SE 4’

    Apple is rumored to unveil a new budget-friendly iPhone tomorrow, and hints are strong that it could be named iPhone 16E rather than iPhone SE 4. Initially, many speculated this new model would be another iPhone SE, following the previous generations. However, recent leaks suggest otherwise, leaning towards the name iPhone 16E.

    The name iPhone 16E first popped up in December, mentioned by Fixed Focus Digital on Weibo, a popular social media site in China. Not long after, a leaker named Majin Bu on X (formerly Twitter) echoed these sentiments, suggesting the next iPhone SE might be dubbed iPhone 16E.

    Just today, Majin Bu shared another clue, stating they’ve seen a box labeled “iPhone 16E”. Adding fuel to this rumor, Bloomberg’s tech journalist Mark Gurman commented on a recent post by Apple CEO Tim Cook, hinting at a “new family member” announcement, which might refer to this newly named device. Also, there are several new case listings on Amazon tagged for the iPhone 16E, although this could just be speculation.

    Amazon iPhone 16E

    The expected features for this new phone include a bigger 6.1-inch OLED screen, Face ID for security, a powerful A18 processor, a USB-C port, compatibility with Apple’s AI features, and a custom 5G modem. We’ll find out the official price and when it’s coming out tomorrow.

  • New iPhone 17 Pro: What it might look like

    New iPhone 17 Pro: What it might look like

    Could this be the design of the new iPhone 17 Pro? A 3D artist named Asher from Front Page Tech shared an image on Tuesday, showing what might be Apple’s next big phone in the iPhone 17 series. The picture gives us one of the clearest views yet of what the iPhone 17 Pro could look like.

    The image shows a big, long camera bump that stretches across the top of the phone’s back. This design looks a bit like what we’ve seen on the Google Pixel 9 Pro. The camera bump is much larger than what we’ve seen in other guesses online. The cameras are arranged in a triangle on the left side, with the flash, microphone, and LiDAR scanner lined up on the right.

    Jon Prosser from Front Page Tech, who says he’s seen the phone, describes it as having two different colors on the back, with the camera part being darker than the rest. However, there are doubts about how true this design is. Normally, the flash and LiDAR scanners are close to the cameras for them to work best.

    It’s unclear if this new look is just for style or changes in how the phone works. Mark Gurman from Bloomberg thinks these images might come from a fake design, but other sources, including some from China with links to Apple’s suppliers, have talked about a bigger camera bump.

    We’re not sure yet if the iPhone 17 Pro Max will have the same look, but it usually does match the Pro model. The new iPhone 17 Air, which is taking over from the Plus model, is expected to have a slimmer camera bump with just one camera on the left and the flash and microphone on the right. We don’t know if the regular iPhone 17 will have this camera style too. Apple usually shows off new iPhones around mid-September, so we might not have to wait long to see if these designs are spot on.

  • AI app banned in South Korea for privacy issues

    AI app banned in South Korea for privacy issues

    In a recent development, users of the AI app DeepSeek in South Korea have hit a snag. The local government has decided to ban the Chinese AI application, citing that it does not follow the country’s data protection rules. As a result, Apple and Google have been instructed to take the app off their app stores in South Korea.

    Temporary Ban on DeepSeek in South Korea

    According to news sources, South Korea’s data protection watchdog has told tech giants like Apple and Google to stop people from downloading this app. However, you can still use DeepSeek through a web browser in South Korea for the time being. The reason given for this ban is that DeepSeek doesn’t meet the requirements set by South Korea’s Personal Information Protection Commission.

    The company behind DeepSeek has admitted they overlooked some aspects of South Korea’s data laws and has appointed lawyers in the country to deal with the situation. Additionally, a spokesperson from China’s Foreign Ministry has stated that China takes data privacy seriously and ensures it is protected by law.

    Path to Reinstatement

    DeepSeek could start working again in South Korea if it makes changes to align with the local privacy laws.

    For a bit of background, DeepSeek is a Chinese tech startup that became famous for its AI model “R1”, which is both effective and resource-efficient compared to others. The app received praise from Apple’s CEO Tim Cook but has also stirred up controversy because of where it comes from.

    Italy was the first to block DeepSeek for similar privacy concerns, and in the U.S., a senator has proposed a law to penalize the use of Chinese AI apps. Last month, DeepSeek climbed to the top of the U.S. App Store, beating out ChatGPT by OpenAI, and it currently sits at number 13 in app downloads.

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  • Apple’s new budget iPhone could boost sales with AI features

    Apple’s new budget iPhone could boost sales with AI features

    Apple is gearing up to launch a new budget-friendly iPhone next week that could significantly increase its popularity, thanks to the inclusion of Apple Intelligence. According to industry analyst Ming-Chi Kuo, this new model, potentially succeeding the iPhone SE 3, is expected to ship around 22 million units this year, outpacing previous entry-level iPhone sales.

    Kuo highlights several advantages for Apple with this new release. Firstly, launching an affordable iPhone between its flagship releases helps maintain sales momentum during typically slower periods. Secondly, by adding Apple Intelligence to a phone that’s cheaper than the premium iPhone 15 Pro and the upcoming iPhone 16 series, Apple can broaden the reach of its AI features. Thirdly, this model will debut Apple’s first self-developed modem, which will first be tested in this less high-stakes environment.

    This move to in-house modems still involves paying licensing fees to Qualcomm, due to their extensive patent holdings. The design of the new budget iPhone is rumored to mimic the iPhone 14, featuring a modern, flat-sided look, Face ID instead of Touch ID, and smaller bezels, though it will likely retain a single back camera.

    Apple has noted that areas where Apple Intelligence is available have seen increased iPhone sales, suggesting that consumers are eager for AI integration. However, regions without these features, like China, have not seen the same growth. Apple Intelligence is set to expand to more markets by this summer.

    The week’s big reveal will occur on Wednesday at Apple’s product launch event, where we might also see the iPad 11 with Apple Intelligence and the MacBook Air with the new M4 chip. This strategic move by Apple could reshape the market dynamics for budget smartphones, making advanced technology more accessible to a broader audience.

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