Apple Intelligence gets China approval; shares hit record high

Published Jul 21, 10:10 AM UTC

China's Cyberspace Administration approved Apple Intelligence for launch in China, clearing a regulatory hurdle that had been in place since 2024. The approval relies on partnerships with Alibaba (Qwen model) and Baidu, allowing Apple to meet local AI regulations requiring domestic models. Apple shares hit a record high, while Alibaba and Baidu stocks rose in Hong Kong. Apple's Greater China sales reached $20.5 billion in Q2 2026, up 28% year-over-year, and its smartphone market share in China increased to 18.1%. The article argues that Tim Cook's strategy of partnering with local AI providers (Alibaba in China, Google Gemini in the US) rather than building proprietary models is a capital-light approach that may prove genius as AI infrastructure costs rise.