Will Apple's AI Partnership With Alibaba Solve Its China Problem? Here's What Analysts Think

Core Insights - Apple is partnering with Alibaba to develop artificial intelligence features for iPhones in China, which could serve as a growth catalyst for the company [2][5] - The partnership aims to enhance iPhone upgrades in a market where Apple has faced sales challenges, particularly in Greater China [3][4] - Analysts from Morgan Stanley and JPMorgan view this partnership as a critical factor for improving Apple's competitive position in China and addressing the iPhone sales slump [5][6] Company Performance - Apple's iPhone sales in Greater China declined year-over-year, marking the only region with a sales drop in the first quarter [4] - The AI features, which are a key selling point for the iPhone 16, have been unavailable in China since their launch in October, impacting sales during the holiday season [4][6] - Following the news of the partnership, Apple shares rose over 2%, while Alibaba's U.S.-listed shares gained 1% [5]