Apple CEO Tim Cook has warned that a full integration of a revamped Siri AI in China will take considerably longer, even as the company begins deploying an initial set of Apple Intelligence features in the world's largest smartphone market following long-awaited regulatory clearance earlier this month.

What Apple is rolling out first

Mainland Chinese consumers will initially receive a targeted suite of Apple Intelligence capabilities, with the Clean Up photo-editing tool — which allows users to erase unwanted objects from images — among the first features to arrive. The staged approach reflects both regulatory constraints and the additional technical work still required to bring a fully revamped Siri experience to the market.

'We are working now through the roll-out of those, and there will be more work required down the road for Siri AI, but we are at the front end of that,' Cook told analysts during an earnings call on Thursday afternoon California time.

The competitive backdrop

Apple is partnering with domestic firms, including Alibaba Group Holding and Baidu, to power Apple Intelligence features on iPhones in China — arriving roughly two years after the same features launched in other markets. The delay has left Apple exposed to fierce domestic competition from local smartphone brands that have aggressively integrated homegrown AI capabilities.

The AI rollout is now central to Apple's strategy to reclaim relevance among Chinese consumers who have had access to competing AI-enhanced devices for well over a year.

Revenue miss clouds the milestone

Apple's total revenue across mainland China, Hong Kong, Taiwan, and Macau rose 22 per cent to US$18.8 billion for the quarter ended June 27, according to the company — but still fell short of Wall Street estimates of US$19.6 billion. The shortfall underscores the urgency of the AI push: hardware sales alone are no longer sufficient to sustain growth in the region.

Globally, Apple's revenue climbed 16 per cent year on year to US$109.4 billion, driven by a 22 per cent surge in iPhone sales.

Why it matters

The China AI rollout represents one of Apple's most consequential market moves in years. Having secured regulatory clearance, the company must now execute a phased deployment while managing partner integrations with Alibaba and Baidu — both of which bring their own competitive interests to the arrangement.

With full Siri AI integration still on the horizon, how quickly Apple can close the feature gap with domestic rivals will determine whether its AI bet translates into a meaningful recovery in China revenue.

What's next

Investors and analysts will be watching for the pace of subsequent Apple Intelligence feature releases in China and any timeline Cook provides for the complete Siri AI overhaul. The company's ability to deepen its partnerships with Alibaba and Baidu while navigating an evolving regulatory environment will be the key variable to monitor in the quarters ahead.