Cook warns full Siri AI in China will take time

Apple ↘ 0.80% CEO Tim Cook told analysts during the company's fiscal third-quarter earnings call on Thursday that a full deployment of Siri AI in China will require additional work, even as the company begins rolling out an initial set of Apple Intelligence features to mainland Chinese consumers.

Limited Features First

Cook said Chinese users would initially receive a targeted suite of Apple Intelligence capabilities, including the Clean Up photo-editing tool, which allows users to erase unwanted objects from photos. "We are working now through the roll-out of those, and there will be more work required down the road for Siri AI, but we are at the front end of that," Cook said.scmp

The phased approach comes after Apple Intelligence received regulatory clearance in China earlier in July, when the Cyberspace Administration of China publicly listed Apple's on-device generative AI service among a batch of approved smartphone AI services. Apple is partnering with Alibaba ↘ 4.74% and Baidu ↘ 2.87% to power the features locally, with Alibaba's Qwen model integrated across Apple's operating systems in China.reuters+1

China Revenue Misses Expectations

The cautious AI timeline underscores Apple's challenge in the world's largest smartphone market, where domestic rivals have moved faster on AI integration. Apple's Greater China revenue for the quarter ended June 27 rose 22 percent year-over-year to $18.8 billion but fell short of Wall Street estimates of roughly $19.6 billion.qz+1

Globally, Apple reported record June-quarter revenue of $109.4 billion, up 16 percent year-over-year, with earnings per share of $2.02, beating analyst expectations. iPhone sales drove much of the growth, rising 22 percent. Shares slipped in after-hours trading despite the overall beat, weighed by the China and services shortfalls.macrumors+3

Competitive Pressure

Apple Intelligence first launched outside China in late 2024, meaning the technology is arriving in the Chinese market roughly two years behind. At its developer conference in June, Apple had acknowledged that its next-generation Siri AI features would not be available in China while the company worked through regulatory requirements. The partnerships with Alibaba and Baidu represent Apple's adaptation to a regulatory environment that requires generative AI services to be registered before public release and favors domestically developed models.cdomagazine+3