(Reuters) – Apple (NASDAQ: ) and Baidu (NASDAQ: ) are working to add AI features to iPhones sold in China, but face hurdles that could hurt the tech giant’s phone sales in the country, The Information reported on Wednesday .
The companies, which adapt Baidu’s large language models for iPhone users, struggle with issues such as understanding queries and the accuracy of LLMs in responding to common scenarios, according to the report.
Apple and Baidu did not immediately respond to Reuters requests for comment.
iPhone sales in China fell 0.3%, while rival Huawei posted a 42% rise in sales in the third quarter, research firm IDC said in October, as competition intensifies in the world’s biggest smartphone market.
Apple’s much-anticipated September unveiling of the iPhone 16 drew scorn in China for its lack of artificial intelligence features.
Also, Apple’s privacy policy does not allow the collection of data from iPhone users who make AI-related queries, but Baidu wants to store and analyze that data, according to the report.
Baidu’s most advanced model, Ernie 4.0, is used as the basis for Apple’s genAI services on the iPhone, Mac and iPad, The Information said, citing people familiar with the matter.
Siri will also use Baidu’s AI models, according to the report.
