Tim Cook is likely visiting China to bolster support for Apple Intelligence, analysts say

In his 2nd sojourn to China this year, Apple CEO Tim Cook met with Beijing officials and section partners arsenic the institution faces challenges with its motorboat of Apple quality and accrued contention successful the market. 

China's Minister of Industry and Information Technology met with the CEO successful Beijing connected Wednesday to sermon Apple's improvement successful China, web information information and unreality services, according to a ministry statement. 

During the conversation, the ministry said Cook signaled Apple's committedness to the country, promising to summation concern successful the marketplace and to turn alongside Chinese companies. He besides met with the leaders of respective section Chinese firms successful the aforesaid day, including China Mobile Chairman Yang Jie, to sermon integer contented and 5G merchandise cooperation, according to local reports. 

Ivan Lam, elder probe expert for Counterpoint Research, said the timing of the travel is significant, coming arsenic section competitors are introducing updated operating systems that integrate AI and caller flagship products.

"This travel seems notable present arsenic the institution could beryllium looking to enactment up collaboration with section players to motorboat Apple Intelligence successful China," Lam said. 

Le Xuan Chiew, Canalys' expert focusing connected Apple strategy research, said the rotation retired of Apple Intelligence successful China was apt the main information for Cook's trip, arsenic good arsenic to "bolster the value of China to Apple's planetary strategy."

The timeline for the instauration of Apple Intelligence successful China remains "uncertain" and volition beryllium mostly connected regulatory approvals, which could explicate immoderate of the messaging absorption of his China trip, Chiew said.

This could beryllium a occupation for the institution arsenic the deficiency of Apple Intelligence connected Chinese devices is expected to weaken the information for users to upgrade to the iPhone 16, helium added. 

Apple Intelligence is the company's artificial quality play, which aims to bring AI crossed its devices, with features specified arsenic an improved dependable adjunct and tools that automatically signifier emails and transcribe and summarize audio recordings.

While the institution has said Apple Intelligence volition rotation retired successful U.S. English this fall, it has been much quiescent connected plans for the merchandise offering successful China.

Cook often travels to China — Apple's largest overseas marketplace — to motorboat products and factories, sojourn suppliers and conscionable with section officials. During his sojourn successful March, helium had been successful Shanghai for the opening of a caller retail store. He besides visited Chengdu this clip past twelvemonth arsenic Apple faced lackluster request successful the world's 2nd largest economy.

During his existent trip, Cook was photographed visiting the offices of the Chinese societal media elephantine Weibo and gathering with its CEO successful a station connected his idiosyncratic Weibo account. Weibo is 1 of the section app developers that has launched applications for Apple's Vision Pro mixed world headset, which was released successful the Chinese marketplace successful June. 

Apple successfully launched the iPhone 16, its latest exemplary successful the series, successful China this September, and the caller phones got disconnected to a beardown start. Sales were up 20% successful the archetypal 3 weeks since launch, compared to the 2023 model, according to information from probe steadfast Counterpoint.

But contempt the palmy merchandise launch, wide iPhone portion sales, including older models, were down 2% year-over-year successful China during the three-week period. 

Apple has faced dwindling marketplace stock successful China amid accrued contention with section players and an expanding penchant among Chinese consumers to prime domestically made goods.

The institution saw its marketplace stock successful the 2nd 4th autumn 5.7% year-over-year, according to Counterpoint. 

After it made a splash with a astonishment 5G exemplary past year, Huawei, 1 of Apple's main competitors successful China, launched competing handsets the aforesaid time the iPhone 16 went connected sale. 

"Huawei's caller resurgence successful the high-end market, driven by its in-house chips and HarmonyOS ecosystem, has intensified the competitory landscape, making it harder for Apple to support its enactment position," said Canalys's Chiew. 

Apple's Vision Pro could besides look much contention successful the marketplace arsenic Huawei is reportedly gearing up to motorboat its ain competing headset arsenic soon arsenic adjacent week.

— CNBC's Arjun Kharpal contributed to this report