On Thursday, Apple’s stock declined as China maintained stringent regulations regarding its artificial intelligence (AI) push.
The iPhone maker’s stock closed the session with a sharp decline of -2.15% to $209.68 apiece. However, it recovered some of its losses in the after-hours trading, rising 0.17% to $210.04 per stock.
Furthermore, the Cupertino-based firm’s market share in China is facing uncertainty, a concern that has arisen with the resurgence of Huawei and other locally made smartphones, which are gaining popularity for their AI tools.
In addition, Apple Intelligence’s foray into AI, a significant strategic move, is set to revolutionize its product offerings. This includes an enhanced model of its voice assistant, Siri, and a feature that can automatically sort users’ emails or transcribe and summarize audio recordings.
Meanwhile, Apple disclosed that it is set to launch the feature in the US this fall, with added language, tools, and platforms to be introduced throughout the year.
However, the firm did not provide details about the product’s availability in China during its AI launch at this month’s annual developers conference.
Meanwhile, analysts noted that it is possibly related to China’s strict regulations on AI as Apple attempts to work out how to advance towards the intricate market.
OpenAI’s ChatGPT Ban in China is Problematic for Apple
Apple has recently revealed its collaboration with OpenAI’s ChatGPT on its voice assistant Siri, but the chatbot is banned in China.
Meanwhile, some of the Apple Intelligence is based on the firm’s large language model (LLM), which runs on iPhones and the company’s servers.
Furthermore, Apple would have to look for an equivalent local partner. Baidu and Alibaba are among the dominant tech firms in China that employ LLMs and voice assistance, with which the company could be a potential ally.
On the other hand, in Beijing, the internet is strictly controlled, as regulators worry that AI services might produce content conflicting with China’s perspectives or ideology.
