Apple's AI Limitations on Priciest iPhones Fail to Excite Chinese Market
Apple's introduction of GenAI capabilities in its smartphones has elicited conflicting reactions in China. Some applaud the decision, while others blame it for lacking creativity. Chinese smartphone makers are increasingly adopting AI to differentiate themselves.
While some smartphone industry experts in the country have hailed the decision, others have condemned it for lacking creativity.
During its annual Worldwide Developers Conference, Apple announced its long-awaited AI blueprint, describing intentions to include various AI services into iPhones, iPads, and Macs. These functions include text creation, photo editing, and call transcription. Additionally, Apple has teamed with Microsoft-backed OpenAI to use ChatGPT for Siri, its digital assistant.
Li An, the proprietor of a five-person app development business in Hangzhou, believes Apple's AI integration is a welcome step for Chinese iOS app developers. He feels that these changes will encourage iPhone owners to stay in the Apple ecosystem. However, opponents contend that Apple's tardy entry into the AI race has resulted in charges of a lack of genuine innovation.
Li Nan, co-founder of Meizu, a Chinese smartphone brand, voiced unhappiness with Apple's AI features, stating that the firm is simply replicating existing technologies and using large language models (LLMs) such as ChatGPT. According to Li, Chinese handsets already offer similar AI features, such as photo editing. Apple has not yet responded to Li's remarks.
Weibo users also pointed out that cheaper Chinese handsets already provide similar functionality. Currently, Apple's AI functions are only available on the premium iPhone 15 Pro and Pro Max models.
Chinese smartphone manufacturers have been actively adopting AI into their products to differentiate themselves in a competitive and stagnant market. Canalys, a consulting firm, forecasts a 1% increase in Chinese smartphone shipments this year. Analyst Lucas Zhong believes that GenAI-capable smartphones would allow Chinese suppliers to compete with Apple in the high-end market by 2024.
Companies like Xiaomi, Vivo, Oppo, and Huawei Technologies have been racing to add AI-powered functions to their devices, including text messaging, photo editing, call answering, and note-taking. Similar to Apple's partnership with OpenAI, these Chinese brands have collaborated with local LLM developers.
Xiaomi, for example, has used Alibaba Group Holding's Tongyi Qianwen model in its latest flagship Xiaomi 14 series phones, along with other AI-related capabilities like as photo enhancement. Oppo has also committed to democratise AI phones by incorporating AI capabilities into all of its products, including more cheap models.
Due to China's restriction on foreign LLMs, Samsung Electronics has teamed with Baidu to deliver AI capabilities for its Galaxy S24 phones. There are also claims that Baidu is in talks with Apple about a similar cooperation.
Apple has been hesitant to deploy AI owing of privacy concerns related with generative AI. According to Ivan Lam, an analyst at market consultant Counterpoint, Apple has prioritised user privacy by using AI in a limited, assisting manner.
Apple's inclusion of GenAI capabilities in its devices receives a mixed reaction in China.
Some praise the move, while others criticise it for lacking innovation.
Chinese smartphone brands have been actively incorporating AI to differentiate themselves.
Source: SCMP