Apple is partnering with Alibaba to roll out artificial intelligence features for iPhone users in China. The development could clear months of uncertainty over Apple's AI strategy for China, where it has been losing market share to domestic rivals, including a resurgent Huawei whose smartphones have included AI tools since last year.

Hangzhou

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Apple is reportedly working on a new partnership with Alibaba to introduce artificial intelligence features to iPhone users in China. This move aims to address declining sales in the region and align with the growing AI market, which is dominated by domestic competitors such as Huawei. The integration of AI tools in Apple's iPhones could help the tech giant regain market share, where sales were down by 11 percent in the December quarter.

Previously, Apple intended to collaborate with Baidu for launching AI services in China but faced challenges due to regulatory and technological barriers, such as the need for an alternative to ChatGPT, which is blocked in the country. Apple's CEO, Tim Cook, has acknowledged the absence of AI capabilities on iPhones as a factor in the decline of sales in China. Huawei's significant growth in phone sales, up 22.8 percent year over year, further compounds the challenge for Apple.

In a potential move to boost sales, Apple may profit from new Chinese government subsidies for smartphones, including iPhones priced under $800. The subsidy could facilitate a 15 percent discount on these models, potentially enhancing Apple's sales prospects in China's competitive smartphone market. Apple may provide further updates on this development during the upcoming earnings season.



Apple working on AI partnership with Alibaba

On that, elsewhere in tech today, Apple shares the best of the mega caps thanks to the defense of a top analyst and some AI news from China. Our Steve Kovac is following that for Steve. Hey there, Scott. Yeah, this is coming off a report this morning in the information that said Apple and Alibaba, they're working on a partnership together. And this is all coming amidst this ugly China story from Apple. You might remember a couple of weeks ago when we reported earnings, they said sales in China were down 11 percent in that December quarter. And so now we have this new idea of a new AI partnership. Let me give you some examples of why Apple may be doing this. Apple Intelligence still has not launched in China. When all these reports started coming out about Apple Intelligence, Baidu was actually the Chinese partner that was said to be the one Apple wanted to use in order to get this launch off the ground there. But they still need China's approval to launch and still looking for that chat GPT alternative. That's because, of course, that GPT is blocked in the country. Tim Cook, he told us a couple of weeks ago that no artificial intelligence on the iPhone is part of the reason why we saw that sales slow down in China. But there's another factor here that Apple doesn't talk about as much. And it's the chart I'm showing you right now. Huawei's resurgence. Look at that. It is up twenty two point eight percent year over year unit change. That means they've sold twenty two percent more phones than they did a year ago. Just eating into Apple's market share there. There is some potential hope in China, though. Eric Woodring over at Morgan Stanley, he focused some of his note this morning on these new subsidies over there in China for smartphones. That includes Apple iPhones under eight hundred dollars. That would mean pretty much all the iPhone 16 line, just not the pro models. And by the way, Tim Cook teased that there would be more to share on this next earning season because basically the Chinese customers are getting the subsidy of 15 percent on these new iPhones. So there's a chance here that could boost some sales growth. Finally, Scott. OK, Steve, thank you for that as well.

Talks between the U.S. President and Russian President Vladimir Putin concluded without an agreement on ending the war in Ukraine, despite being widely anticipated as a possible turning point.

Anchorage

Ukraine Invasion

Zelenskyy set to meet U.S. president Monday after no ceasefire deal

For the first time in a decade, Vladimir Putin was on U.S. soil for a much-anticipated meeting with Donald Trump. The U.S. and Russian presidents were supposed to discuss a deal to put an end to Moscow’s war against Ukraine, but they did not mention a ceasefire after the talks.

Trump, Putin wrap up talks with no mention of ceasefire

President Trump and Russian President Vladimir Putin met in Alaska for a high-stakes summit over ending the war in Ukraine. Nancy Cordes and Margaret Brennan have coverage and analysis.

What we know about the high-stakes summit between Trump and Putin

U.S. President Donald Trump and Russia's Vladimir Putin have arrived in Alaska ahead of their high stakes talks on Ukraine. The expected one-on-one meeting between Trump and Putin has expanded to include U.S. officials Steve Witkoff and Marco Rubio and other Russian officials.

Trump, Putin arrive in Alaska for historic summit

Israel's far-right finance minister approved the construction of a controversial new settlement in the West Bank, saying it "finally buries the idea of a Palestinian state." But it's unclear if this move will actually go through. Rights groups swiftly condemned the plan.

Jerusalem

Middle East Conflict

Israeli finance minister approves new West Bank settlement

U.S. President Donald Trump indicated in an interview that he hoped to push Russian President Vladimir Putin toward a second meeting but acknowledged there was a chance Friday’s meeting would not succeed.

Washington

Trump shifts tone, confident on deal to end Ukraine war

Israeli Finance Minister Bezalei Smotrich said a plan to add more than 3,000 homes to a controversial settlement in the West Bank would bury ‘the idea of a Palestinian state.’

Israel furthers plan for settlement that divides the West Bank

Ukrainian President Volodymyr Zelenskyy met with British Prime Minister Keir Starmer in London. This comes one day before U.S. President Donald Trump is set to meet with Russian President Vladimir Putin in Alaska to discuss a possible ceasefire in Ukraine.

London

Zelenskyy, Starmer meet ahead of Trump, Putin summit in Alaska

Speaking in the Oval Office on Thursday, President Trump sounded optimistic about his upcoming summit with Russian President Vladimir Putin in Alaska.

Trump says he thinks Putin and Zelenskyy will make peace

Florida Gov. Ron DeSantis has announced plans to build another immigrant detention center, dubbing it the "Deportation Depot." The facility will be in North Florida.

Jacksonville

DeSantis announces plan to build another immigrant detention center

President Trump had a virtual call Wednesday with Ukrainian President Volodymyr Zelenskyy ahead of his meeting with Russian President Vladimir Putin on Friday in Alaska. After the call, Zelenskyy said he told Mr. Trump that "Putin is bluffing."

Ukraine's Zelenskyy warns President Trump ahead of meeting with Putin

U.S. President Donald Trump said he would ask the Republican-controlled Congress to extend federal control of Washington's city police force beyond 30 days, escalating his campaign to exert presidential power over the nation's capital.

Trump wants to extend federal control over Washington police

With just hours left to reach a deal on plastics, negotiators in Geneva were scrambling to resolve a deadlock caused by “red lines” of member countries. Nations are crafting the first global, legally binding treaty on plastics pollution at the United Nations office in Switzerland.

Geneva

Global plastics treaty talks in Geneva stall as deadline looms

At least 123 people have been killed in 24 hours, according to Gaza's Health Ministry. Israeli Prime Minister Benjamin Netanyahu says people will be given the opportunity to leave Gaza before a planned ground offensive, but no one is being pushed out.

Israeli strikes pound Gaza ahead of planned ground offensive

America's NATO allies stood firmly with Ukrainian President Volodymyr Zelenskyy ahead of the face-to-face meeting between President Trump and Russian President Vladimir Putin in Alaska. The European leaders showed a united front that there should be no peace deal without Ukraine's involvement.

Kyiv

NATO allies stand with Ukraine ahead of Trump-Putin summit

U.S. Immigration and Customs Enforcement must improve conditions for detainees at New York's 26 Federal Plaza, a judge ruled Tuesday.

New York

Judge rules ICE must improve conditions for detainees at NY facility

National Guard troops arrived in Washington, D.C., following President Donald Trump's deployment and federalization of local police to crack down on crime in the nation's capital.

National Guard troops arrive in Washington, D.C.

U.S. President Donald Trump said that he had a "very good call" with Ukrainian President Volodymyr Zelenskyy, days before his scheduled Alaska meeting with Russian President Vladimir Putin.

Trump had 'very good call' with Zelenskyy ahead of Putin meeting

Israel's military chief of staff, Lt. Gen. Eyal Zamir, has approved the framework of a plan for a new offensive in Gaza. CBS News Middle East reporter Courtney Kealy has more details.

Israeli military chief approves 'framework' for new Gaza offensive

President Donald Trump said Wednesday there will be “very severe consequences” if Russian President Vladimir Putin doesn’t agree to stop the Ukraine war after Friday’s summit.

Trump warns of 'severe consequences' if Russia doesn't stop war

A Wisconsin woman on Tuesday was found guilty in the United Kingdom of trying to kill a man at point-blank range in 2019. Aimee Betro, 45, was part of a plot with two other co-conspirators to murder Sikander Ali, prosecutors said.

Birmingham

American woman found guilty of UK murder-for-hire plot

Record-high temperatures across Europe are fanning wildfires across the continent. Experts say a warming climate and an increase in flammable vegetation from rural depopulation are major factors.

Madrid

Historic heat fuels fires across Europe

Hungary's PM Viktor Orbán said the EU attempts to set conditions for a meeting to which leaders of the EU were not invited. He also called for an EU-Russia summit.

Brussels

EU leaders rally behind Ukraine ahead of Trump-Putin talks

President Trump said Monday he expects that Russia and Ukraine will "land swap" certain territories as part of an eventual ceasefire deal. Mr. Trump is set to meet with Russian President Vladimir Putin in Alaska on Friday.

Trump claims 'land swapping' between Russia, Ukraine will happen

Taylor Swift confirmed her 12th studio album, "The Life of a Showgirl," in a teaser for her upcoming appearance on her boyfriend Travis Kelce's podcast. Swift did not disclose the release date of the album.

Taylor Swift announces new album, 'The Life of a Showgirl'

U.S. President Donald Trump said that his planned meeting with Russian President Vladimir Putin in Alaska on Friday will be to "feel out" the leader as pressure mounts for Russia and Ukraine to make a peace deal.

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Rise of AI