Illustration=ChatGPT DALL·E

Apple is in negotiations with Tencent and ByteDance to integrate artificial intelligence (AI) features into the iPhone targeting the Chinese market, Reuters reported on the 18th (local time). Apple is discussing plans to incorporate local AI models such as Tencent's "Hunyuan" and ByteDance's "Doubao," which are reportedly in the early stages.

Apple has launched AI features that integrate Siri with ChatGPT in some countries like the United States; however, in China, the use of generative AI services requires government approval, and there are restrictions on Western corporations' AI models due to censorship, making local partners essential.

The decline in iPhone market share in China is also affecting Apple's push to introduce AI features. In the third quarter, Apple's smartphone sales in China decreased by 0.3% compared to the previous year, while Huawei saw a 42% surge, expanding its market share. In particular, the success of Huawei's Mate 60 and the Mate 70 series equipped with AI features poses a significant threat to Apple.

In the Chinese AI market, not only major corporations like Tencent, ByteDance, and Baidu are competing, but also numerous startups with various AI models. Apple appears to be focusing on negotiations with Tencent and ByteDance after discussions with Baidu were halted due to technical issues.

Apple, Tencent, and ByteDance did not respond to requests for comments regarding the negotiations, and Reuters reported that ByteDance declined to comment.