What happened
Apple's first foldable smartphone will launch in China next week with Alibaba's AI built in, as Apple Intelligence — Apple's generative AI suite — reaches the mainland after years of regulatory delays.
Why it matters
Apple sees AI features as critical to competing in China, where it trails only Huawei.
WHO IT HITSChinese smartphone buyers will soon get an Apple device with locally supplied AI, while Apple and domestic vendors like Huawei and StepFun adjust their product plans in the world's largest smartphone market.
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Apple has been trying to bring Apple Intelligence to mainland China for years, held back by regulatory delays. Its first foldable smartphone, launching in China next week, will ship with Alibaba's AI built in — a concrete sign that the company is finally clearing that path. Apple sees AI features as critical to competing in China, where it lags only Huawei. The backdrop is a smartphone market that has slumped amid weak consumer spending and rising hardware costs. Even so, new entrants are testing the waters: AI lab StepFun launched a $600 AI agent smartphone on Tuesday. An analyst called that move "quite bold" under present conditions, but suggested it might be explained by the smartphone's unparalleled ability to continually gather user data, which could let AI assistants become ever-more personalized.
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