Bank of America Securities reaffirms its “Buy” rating for Apple Inc. (NASDAQ:AAPL), with a stock price of $236.87.
Apple’s partnership with Alibaba aims to enhance AI features on iPhones in China, a crucial market for Apple.
The collaboration has led to a positive impact on Alibaba’s stock, indicating market confidence in this strategic move.
Apple Inc. (NASDAQ:AAPL) is a leading technology company known for its innovative products like the iPhone, iPad, and Mac. On February 13, 2025, Bank of America Securities maintained its “Buy” rating for Apple, with the stock priced at $236.87. This endorsement reflects confidence in Apple’s strategic moves and market position.
A significant development for Apple is its partnership with Alibaba to enhance AI features on iPhones sold in China. This collaboration is crucial as China is a key market for Apple. Alibaba’s chairman confirmed the partnership, emphasizing the importance of integrating advanced AI capabilities into Apple’s products in China.
The partnership announcement positively impacted Alibaba’s stock, which rose by 2.5% following the news. Alibaba’s Hong Kong-listed shares increased by 2.80 HKD to 116.6 HKD, with a year-to-date rise of 43%. This collaboration highlights the strategic importance of AI in Apple’s efforts to regain market share in China.
Apple has faced challenges in China, with a 17% decline in iPhone sales in 2024 due to competition from Huawei and Vivo. Analysts have pointed out Apple’s lack of advanced AI features as a weakness. In response, Apple introduced Qwen 2.5, an enhanced AI model that outperforms competitors in performance and cost.
Despite Apple’s silence on its ‘Apple Intelligence’ initiative in China, the company plans to launch this AI strategy in the U.S. later this year. The partnership with Alibaba is a strategic move to strengthen Apple’s position in the Chinese market, where domestic brands have already introduced AI features in their devices.
