Alibaba will partner with Apple to support iPhones' AI services offering in China, its chairman said on Thursday, a move likely to help the U.S. company ease falling smartphone sales in its key market.

Apple will work with Chinese tech giant Alibaba to roll out AI services in the world’s biggest market for mobile phones, in a move that removes months of uncertainty for the Cupertino-based firm.

The update comes at a time when Apple recently reported a 1% dip in iPhone sales during the holiday quarter, failing to meet expectations. A more advanced yet still affordable iPhone SE could help Apple compete in key markets such as China and India, where budget-friendly smartphones with premium features continue to gain traction.