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Tim Cook warns of slow Siri AI roll-out in China, worsening memory crisis

In earnings call, Cook says Apple to launch AI software in China, an effort to retain competitive edge in world’s largest smartphone market

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Apple CEO Tim Cook in Los Angeles on July 27. Photo: AFP
Iris Dengin Shenzhen
Apple is taking its first concrete steps to roll out initial artificial intelligence (AI) features in China, but CEO Tim Cook warned that a full integration of a revamped Siri AI there would take longer.

Mainland Chinese consumers would first get a targeted suite of original Apple Intelligence capabilities, including the Clean Up photo-editing tool, which allows users to erase unwanted objects in photos, according to Cook.

“We are working now through the roll-out of those, and there will be more work required down the road for Siri AI, but we are at the front end of that,” Cook told analysts during an earnings call on Thursday afternoon California time.

The deployment follows Apple Intelligence’s long-awaited regulatory clearance in China earlier this month. The US technology giant is partnering with domestic firms, including Alibaba Group Holding and Baidu, to power the features on iPhones – two years after Apple Intelligence first launched elsewhere. Alibaba owns the South China Morning Post.

The roll-out is critical for Apple, which is leaning on AI features to stave off fierce domestic competition in China – the world’s largest smartphone market. The news of its expansion arrived alongside disappointing regional financial performance.

Apple’s total revenue in mainland China, Hong Kong, Taiwan and Macau – rose 22 per cent to US$18.8 billion for the quarter ended June 27, but still fell short of Wall Street estimates of US$19.6 billion.

Globally, Apple’s revenue rose 16 per cent year on year to US$109.4 billion, driven by a 22 per cent surge in iPhone sales.

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