Apple Intelligence in China, things are moving forward! Soon France?

You know Apple Intelligence, the suite of AI tools presented at WWDC 2024. American users have already benefited from the first features since October. On the other hand, if you live in Europe or China, you will have to wait. This situation explains whyTim Cook increases his trips to Beijing, witha third visit this year.

Be aware that the Chinese market weighs heavily on Apple: 17% of turnover for the 2023 financial year. An issue that pushes the firm to redouble its diplomatic efforts, especially since sales there have fallen by 8%, profit froma local manufacturer that scares Apple.

A complex regulatory battle

If you follow Apple news, you may have noticed that the Chinese Cyberspace Administration doesn't make things easy. According to a senior official at the regulator,without local partnership, the approval process will be “long and complex”. This firm position pushes Apple to negotiate with local players: according to three sources close to the matter,discussions are underway with Baidu, ByteDance and Moonshot.

You may not know it, but the situation is getting worse because of a fierce competitor there: Huawei. The Chinese manufacturer already offers its own generative AI features in its latest smartphones. This local competition adds to Apple's regulatory challenges.

A different approach on the old continent

If you are European, your situation differs from that of Chinese users. The European Union imposes its own rules via the DMA. Tim Cook also confirmed during a meeting with shareholders thatApple is working constructively with European and Chinese regulators.

According to Samik Chatterjee, analyst at JPMorgan, expect to see Apple adopt a flexible approach in China by increasing local partnerships. The analyst believes that the deployment of Apple Intelligence in the Middle Kingdom could bepostponed to the second half of 2025, or even beyond.

This would not be the first time that Apple has complied with Beijing's demands. The firm has already shown its flexibility by agreeing to integrate RCS into iOS 18following Chinese pressure, even though it had resisted requests from Google and Samsung. An attitude which reflects the strategic importance of the Chinese market for the Apple brand.