Apple to install Baidu AI on its iPhone 16 and other products in China, report says

The local media article followed a report on Friday by the Wall Street Journal that said Apple had held initial talks with search engine giant Baidu to use the Chinese firm’s generative AI on its iPhone and other products in China.

The development comes amid Apple chief executive Tim Cook’s visit to China, during which he opened a new retail store in Shanghai and met with key Chinese suppliers to refresh his commitment to the country as a market and manufacturing base.

Cook also said at the conference that the company plans to launch its Vision Pro mixed-reality headset in the mainland market later this year, according to a report by Chinese state broadcaster CCTV on Sunday.

The company “faced stiff competition at the high end [of the market] from a resurgent Huawei Technologies, while getting squeezed in the middle on aggressive pricing by the likes of Oppo, Vivo and Xiaomi”, the Counterpoint report said.

However, AI service providers are facing increased regulatory curbs, as mainland authorities issue new guidelines and rules this year to ensure that AI-generated content aligns with what the government permits.