Will Apple’s AI Partnership With Alibaba Solve Its China Problem? Here’s What Analysts Think | Global News Avenue

apple(AAPLIt is reportedly cooperated with Chinese e-commerce giant Alibaba (dad) To develop Apple intelligence capabilities for Chinese iPhones, analysts say it may be a growth catalyst.

The two companies jointly developed AI Function and submit it to the Chinese Internet regulator Reuters Report citation information. Apple and Alibaba did not immediately respond to requests for comment.

If successful, the partnership will drive the important driver of iPhone upgrades to the market where Apple sells struggle. CEO Tim Cook says Apple sees it Record iPhone upgrades In its first quarter, sales were higher in markets with Apple intelligence.

However, China has not been able to access AI capabilities since its launch in October, hitting Apple during the critical holiday sales season. Big China is the only region for Apple to sell in the first quarter Year-on-year decreaseiPhone sales missed analyst expectations.

Morgan Stanley analysts told clients on Tuesday that the Alibaba partnership will be a “important catalyst for Apple’s competition in China” and suggested it could address Apple’s sluggish iPhone sales in the country. JPMorgan also said the move supports “bull case expectations”, which led to the company’s expectations of launching the iPhone 17 this fall.

Apple rose more than 2% on Tuesday, while U.S.-listed Alibaba shares rose 1%.

Correction – Fine. 11. 2025: This article has been updated to correctly state the date of the Morgan Stanley annotation to the client.