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Apple Facing Hurdles in Adapting Baidu AI Models for China, The Information Reports

FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo
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Apple Facing Hurdles in Adapting Baidu AI Models for China, The Information Reports

FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo

f Apple and Baidu are working to add AI features to iPhones sold in China, but are facing hurdles that could hurt the tech giant's phone sales in the country, The Information reported on Wednesday.

The companies, which are adapting Baidu's large language models for iPhone users, are grappling with issues such as the LLMs' understanding of prompts and accuracy in responding to common scenarios, according to the report.

Apple and Baidu did not immediately respond to Reuters' requests for comment.

Sales of iPhone in China slipped 0.3%, while rival Huawei posted a 42% surge in sales in the third quarter, research firm IDC had said in October, as competition intensifies in the world's largest smartphone market.

Apple's long-awaited iPhone 16 launch in September had drawn scorn in China for its lack of artificial intelligence features.

Also, Apple's privacy policies do not allow collection of data from iPhone users who make AI-related queries, but Baidu wants to save and analyze this data, according to the report.

Baidu's most advanced model, Ernie 4.0, is being employed as the foundation 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.

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Japan's Nintendo Fans Test Switch 2 ahead of Launch amid Tariff Worries

An attendee plays Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention center in London, Britain, April 11, 2025. REUTERS/Isabel Infantes
An attendee plays Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention center in London, Britain, April 11, 2025. REUTERS/Isabel Infantes
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Japan's Nintendo Fans Test Switch 2 ahead of Launch amid Tariff Worries

An attendee plays Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention center in London, Britain, April 11, 2025. REUTERS/Isabel Infantes
An attendee plays Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention center in London, Britain, April 11, 2025. REUTERS/Isabel Infantes

Nintendo fans were given a chance to try out the company's new Switch 2 gaming device at an event near Tokyo on Saturday, ahead of a release that some worry could be overshadowed by tariffs driving up prices.
"Since Mr. Trump became president tariffs have gone up so I am concerned about a price hike not just for the game console but for accessories too," said Hidenori Tanaka, 55, a real estate company employee, who attended the event.
Consumers around the world could face higher prices for electronic devices as tariffs imposed by the US President Donald Trump's administration on trading partners including China raise costs for companies operating global supply chains. While Trump has rolled back some tariffs, the threat of a damaging trade war still looms, Reuters said.
Gamers at the pre-launch event began lining up outside the Makuhari Messe convention center near Tokyo from mid-morning to play Mario Kart World, Donkey Kong Bonanza, and other titles on the Switch 2.
Despite the possibility of higher prices, there are early indicators of robust consumer demand for the successor to the Switch, which has sold more than 150 million units since 2017 and transformed Nintendo's fortunes.
The Kyoto-based gaming company said on Wednesday it had received 2.2 million applications in the lottery for Switch 2 in Japan and could not fulfil all the demand.
"Honestly, I didn't think I had a shot. Everyone on social media was saying they missed out, so I figured I would too," said Hyuma Hashiguchi, 28, who won the lottery to be among the first to buy the Switch 2.
Nintendo is holding hands-on events around the world including in New York, Berlin and Hong Kong.
The Switch 2 will sell for 49,980 yen ($350) for a Japanese-language-only version. In the United States, Nintendo initially paused pre-orders due to tariff concerns but later said it would maintain pricing at $449.99.