Apple limiting AI to priciest iPhones generates less excitement in China

At the same time, Apple’s perceived tardiness to the AI race engulfing Silicon Valley right now has led to rehashed criticism of the company not being truly innovative.

Li Nan, a co-founder of Chinese smartphone brand Meizu who left the company in 2019, said he found Apple’s AI features disappointing as the company is just copying from others and integrating existing large language models (LLMs) – the technology that underpins chatbots like ChatGPT. Chinese handsets already have similar AI features like photo editing, the entrepreneur wrote on the microblogging platform Weibo.

Apple did not immediately respond to questions about Li’s remarks on Wednesday.

Other users on Weibo also argued that similar functionality could be found on cheaper Chinese handsets. Apple is only making its AI functions available on the premium iPhone 15 Pro and Pro Max for now.

Like much of the technology industry, Chinese smartphone brands have been aggressive in their adoption of AI in hopes of standing out in a crowded and stagnant handset market. Canalys, a consultancy, forecast 1 per cent growth in Chinese smartphone shipments this year.

“The GenAI-capable smartphone presents important opportunities for Chinese vendors to differentiate in the high end in 2024 to challenge Apple in their home market,” Canalys analyst Lucas Zhong wrote in a note in April.

Chinese vendors, from Beijing-based Xiaomi to Guangdong-based Vivo, Oppo and Huawei Technologies, have been racing to add a variety of AI-powered functions to their devices to help users write text messages, edit photos, answer calls and take notes.

Similar to Apple’s tie-up with OpenAI, they have each teamed up with Chinese LLM developers.

Xiaomi has integrated Alibaba Group Holding’s Tongyi Qianwen model into its latest flagship Xiaomi 14 series phones, in addition to other AI-related features like photo enhancement. The company has been using GenAI to improve its Xiao Ai chatbot in smartphones and electric vehicles. Alibaba owns the South China Morning Post.

Oppo also announced in early June that it is looking to “democratise [AI phones] for the first time in the industry”, as the company pledges to bring AI functions to all of its products, including more affordable devices. It aims to have its AI features available to 50 million users by year’s end.

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How does China’s AI stack up against ChatGPT?

How does China’s AI stack up against ChatGPT?
With foreign LLMs banned on the mainland, Samsung Electronics struck a deal with Baidu to provide AI capabilities for its Galaxy S24 phones in the country. The Beijing-based internet search giant is also said to be in talks with Apple about a similar partnership.

In recent years, Apple has sought to differentiate itself from rivals by emphasising privacy, which is seen as a challenge when using data-hungry LLMs, especially those developed by third parties.

“Apple’s much-anticipated adoption of AI has been delayed due to long-standing privacy concerns surrounding generative AI,” said Ivan Lam, an analyst at market consultancy Counterpoint. “This is why AI has already been used in many features and functions on Apple devices, but only in an assistive capacity rather than in a general way.”