Tensions between the US and China have delayed Apple's AI rollout in China, FT reports

The Financial Times claims that the Cyberspace Administration of China (CAC) is delaying the introduction of AI services by Apple Inc. (NASDAQ:AAPL) and Alibaba in China.

Their February deal to incorporate AI technologies into iPhones in China is on hold due to geopolitical tensions resulting from U.S. President Donald Trump's trade war. Consumer-facing AI technologies need regulatory permission, and the CAC has not yet given its approval to these applications.

The business is facing diminishing iPhone sales in China due to increased local competition, particularly from Huawei, which has integrated DeepSeek's AI models into its handsets. The firm is at a disadvantage to its AI-enabled Android rivals due to its lack of sophisticated AI technologies, such as ChatGPT-powered features and Apple Inc. (NASDAQ:AAPL)’s postponed "Apple Intelligence."

More pressure is added by Trump's recent pronouncement of a 25% tariff on iPhones sold in the US that are not produced locally. New software improvements are anticipated during Apple Inc. (NASDAQ:AAPL)’s WWDC event, which takes place from June 9–13.

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