I find the recent scrutiny surrounding Apple's $Apple(AAPL)$  AI partnership with Alibaba $Alibaba(09988)$   quite concerning, especially given the potential impact on iPhone sales in China. The post highlights how U.S. White House and congressional officials have been reviewing this deal, as Apple plans to integrate its Apple Intelligence features with Alibaba's technology in China. 

This collaboration is critical for Apple, considering China accounts for a significant portion of its revenue, and I worry that this scrutiny could delay the launch of these AI features. If the launch is hindered, I fear it might exacerbate the ongoing struggle with iPhone sales in the region, which have already been declining due to competition from local brands like Huawei.

I am also intrigued by the question of whether Alibaba's stock could drop to 110 dollars as a result of this situation. The partnership initially boosted Alibaba's shares, reflecting optimism about its role in powering AI for iPhones, but the recent U.S. concerns might reverse that momentum. I have noticed that Alibaba's stock has seen significant growth earlier this year, partly due to its advancements in AI, but the geopolitical tensions between the United States and China could create uncertainty. If regulators impose stricter measures or if Apple faces pressure to abandon the deal, I think it could lead to a sharp decline in Alibaba's stock value, which would be a major setback for both companies.

Overall, I feel this situation reflects the broader challenges Apple faces in balancing its global ambitions with the complexities of operating in China. The need for a local partner like Alibaba to navigate China's regulatory environment is clear, but the political backdrop makes it a risky move. I hope Apple can find a way to address these concerns and proceed with the partnership, as I believe the integration of AI could revitalize iPhone sales and strengthen its position in this key market. However, I am keeping a close eye on how this unfolds, as the outcome could have far-reaching implications for both Apple and Alibaba in the coming months.

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