Apple Intelligence trial starts in China via Alibaba's Qwen

Apple's China rollout of Apple Intelligence arrives roughly two years after the features first launched in the United States and other countries in autumn 2024. The delay stemmed from strict Chinese regulatory requirements, including registration with the country's internet watchdog and mandates to use local data centers and process data domestically. Apple only secured regulatory approval in July, after reportedly holding talks with Chinese tech firms including Alibaba, Baidu, ByteDance and Tencent. The company's decision to partner with Alibaba's Qwen reflects a structural concession on pricing and defining power over the AI experience in China, according to Zhang Yi of iiMedia, who also noted that compliance costs, not R&D lags, drove the delay. Despite a 21 percent revenue increase in Greater China last quarter, new CEO John Ternus still faces significant challenges in an evolving market, and the trial rollout does not necessarily give Apple a significant advantage, said Ivan Lam of Counterpoint Research.