Apple’s Cook praises DeepSeek ahead of Shanghai developer conference

Apple’s Cook praises DeepSeek ahead of Shanghai developer conference

  • 24.03.2025 17:50
  • scmp.com
  • Keywords: AI, Market Share

Apple CEO Tim Cook praised Chinese startup DeepSeek’s AI models as "excellent" during a Beijing forum, ahead of an upcoming developer conference in Shanghai. He highlighted the company's innovation while Apple awaits final approval to launch its own AI tool, Apple Intelligence, on iPhones in China.

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Estimated market influence

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

CEO praised DeepSeek's AI models, which could enhance Apple's AI capabilities and market position in China. Apple is planning to launch Apple Intelligence, potentially increasing their market share.

DeepSeek

Positivesentiment_satisfied
Analyst rating: N/A

Highlighted by Apple CEO as excellent, likely boosting its reputation and business opportunities.

Context

Analysis of Apple’s Cook Praises DeepSeek Ahead of Shanghai Developer Conference

Key Facts and Data Points

  • Apple CEO Tim Cook praised Chinese AI startup DeepSeek for its "excellent" models during the China Development Forum in Beijing.
  • Apple is awaiting final approval to launch Apple Intelligence, an AI-powered feature, on iPhones in mainland China.
  • The launch of Apple Intelligence is planned alongside the release of the latest iOS version in April, supporting multiple languages including simplified Chinese.

Market Performance

  • Apple’s smartphone shipments in China dropped by 25% in the fourth quarter (Q4), despite the iPhone 16 series contributing to a rise in sales and securing the top spot for three months through December.
  • For the full year, Apple’s shipments declined by 17%, totaling 42.9 million units, trailing domestic competitors Vivo and Huawei.

Competitive Landscape

  • Apple faces intensifying competition from Chinese brands like Vivo, Huawei, and others in the smartphone market.
  • Despite challenges, Apple remains a key player in China, with its ecosystem and brand loyalty driving sustained demand.

Strategic Implications

  • Cook’s praise for DeepSeek highlights strategic collaboration between Apple and Chinese AI startups, potentially enhancing Apple’s AI capabilities in China.
  • The delayed launch of Apple Intelligence underscores regulatory hurdles and the need to adapt to local market dynamics.

Long-Term Effects and Industry Impact

  • The integration of AI into Apple products could redefine its competitive edge in the global tech market.
  • DeepSeek’s partnership with Apple may accelerate AI adoption in China, positioning it as a key player in the global AI ecosystem.

Regulatory Considerations

  • While not explicitly mentioned, regulatory approvals for Apple Intelligence suggest ongoing negotiations or compliance efforts to operate in China’s tightly controlled tech environment.

Conclusion

Apple’s strategic focus on AI integration and partnerships with Chinese startups like DeepSeek will be critical for maintaining its market presence in China. The company’s ability to navigate competitive pressures and regulatory challenges will determine its long-term success in the region.