Apple's struggle in China is not only about declining sales. At this point, with a falling iPhone market share and limited AI features, thanks to China's strict regulations, Apple has to make a choice.
Imagine relying on a market for years and then seeing local brands like Huawei taking over your share.
Apple was quite certain its new AI, "Apple Intelligence," would boost sales, but China's restrictions won't allow it to launch. They are not meeting regulations, mainly due to their use of ChatGPT, which China banned.
A new research center in Shenzhen could be one way of appealing to regulators. But then, the question is, how much should Apple compromise? Indeed, they have partnered with Chinese-owned companies for iCloud, such as GCBD. Still, with China tightening AI rules to require every tiny detail on coding and algorithms, it is clear that Apple may have to make even bigger compromises.
