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The news that Apple is considering the application of Baidu AI (Ernie) is becoming an issue. As a company that has emphasized the originality of its OS, it is surprising that it is considering introducing services from other companies such as Google or OpenAI.
However, as China's leading company, Baidu, becomes the subject of review, articles with provocative titles that are somewhat misleading are pouring in.
To conclude, it is natural for Apple to consider introducing Baidu AI.
Why Apple is reviewing third-party AI
Last week, there was news that Apple was reviewing Google's Gemini. There was also an article saying that the introduction of OpenAI was being discussed.
While Apple's own AI development is somewhat behind, the AI market is already in full swing. Following the installation of AI functions in Samsung's latest Galaxy model (S24 series), a strong competitor, the AI function update of the previous models (S23, Flip5 series) is expected. This feature and update support has been receiving such a positive response that Apple has no choice but to respond.
Of course, Apple also announced the launch of its own AI in its last earnings announcement. However, it was difficult to rely only on in-house development, as the next lineup was expected to release a complete AI smartphone.
China’s AI market regulation
The Chinese government regulates AI models to undergo review by the State Internet and Information Administration (CAC). Since the regulations began in August 2023, more than 40 Chinese companies, including Baidu, Alibaba, and ByteDance, have been approved, but there have been no cases of foreign companies being approved. Considering that the use of Google and Netflix is restricted in China, it may be natural to restrict approval of more sensitive AI.
Therefore, unless Apple decided to release smartphones without AI functions in China, collaboration with Baidu was expected. This is the same for Samsung. Samsung is launching its latest model, the Galaxy S24 series, and is selling it with Baidu's Ernie in the Chinese model and Google's Gemini model in other markets.
Nevertheless, a market that cannot be missed: China
Nevertheless, China is a market that Apple cannot miss. As of early 2023, iPhone market share in China ranked 1st with 17.3% It is one of the key markets that has driven Apple's sales growth.
The glory of being number one was short-lived, and due to the aggressive pricing policies of Oppo, Vivo, Xiaomi, etc., led by Huawei, iPhone sales fell, and the market share lost first place again, and sales in the first six weeks of 2024 decreased by 24% compared to the previous year.
Despite poor performance, Apple opened its eighth store in Shanghai, and Apple CEO Tim Cook visited China three times last year and held meetings, showing that he places importance on the Chinese market.
Considering this situation, expressions such asApple's urgent introduction of Baidu AI and unconventional moveseem to be excessive expressions.