Will Apple’s AI Partnership With Alibaba Solve Its China Problem? Here’s What Analysts Think [Video]

Apple (AAPL) is reportedly partnering with Chinese e-commerce giant Alibaba (BABA) to develop Apple Intelligence features for iPhones in China, which analysts said could be a growth catalyst.

The companies have co-developed artificial intelligence features and submitted them to Chinese internet regulators, according to a Reuters report citing The Information. Apple and Alibaba did not immediately respond to requests for comment.

If successful, the partnership would bring a significant driver of iPhone upgrades to a market where Apple’s sales have struggled. CEO Tim Cook said Apple saw record iPhone upgrades in its fiscal first-quarter, with stronger sales in markets where Apple Intelligence is available.

However, the AI features have been unavailable in China since their October launch, hitting Apple during the key holiday sales season. Greater China was the only region where Apple’s first-quarter sales declined year-over-year, and iPhone sales in the country missed analysts’ expectations.

Morgan Stanley …