Apple has formed a new data-processing venture in Shanghai, according to business registry information, as the US tech giant’s bid to bring artificial intelligence (AI) services to iPhones in mainland China remains in limbo.
Established on Friday with a registered capital of US$35 million, Apple Technology Development (Shanghai) will focus on software development, big data services, storage services and data processing, according to Chinese business registry platform Tianyancha.
Tejas Kirit Gala, who heads Apple’s multiple entities in the country, serves as the legal representative of the new firm, which is wholly owned by Apple South Asia, according to Tianyancha.
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Apple did not immediately respond to a request for comment on Friday.
The Cupertino, California-based company’s latest move comes amid growing challenges in China, the world’s biggest smartphone market, where it faces increased competition from domestic handset vendors including a resurgent Huawei Technologies.
Apple is also awaiting regulatory approval to roll out its Apple Intelligence suite for iPhone users on the mainland.
Apple in October 2024 released the first set of its Apple Intelligence features across iPhones, iPads, and Macs used outside China. Photo: Shutterstock alt=Apple in October 2024 released the first set of its Apple Intelligence features across iPhones, iPads, and Macs used outside China. Photo: Shutterstock>
Last month, Apple was said to be in early-stage talks with Tencent Holdings and ByteDance to introduce Apple Intelligence in China, where releasing generative AI products requires a local partner, according to a report by Reuters.
Earlier in December, Apple was said to be working with internet search giant Baidu on a local AI partnership. But disputes over access to user data and inaccurate responses to user queries contributed to slow progress, according to a report by US tech news outlet The Information.
Apple chief executive Tim Cook last year made at least three visits to China, where he met the company’s key mainland suppliers and industry regulators to discuss topics including data security and cloud services.
The company earlier this month started offering fresh price cuts on iPhones and other products via its China website and bricks-and-mortar Apple Stores to help boost sales on the mainland.
