CUPERTINO: Apple unveiled a new iPhone designed with generative artificial intelligence (AI), aiming to boost sales and demonstrate its competitive edge in technology. The upcoming iPhone 16 is a crucial release for the tech giant, which hopes the new AI features will attract customers to upgrade.
At an event held at Apple’s headquarters in Silicon Valley, CEO Tim Cook expressed excitement about the new iPhones, stating, “We are thrilled to introduce the first iPhones built from the ground up for Apple Intelligence and its groundbreaking capabilities.”
With $39 billion in sales last quarter, the iPhone represents about 60 percent of Apple’s revenue and remains the primary gateway to its services like the App Store and Apple TV, which are increasingly important to the company’s business. Apple has been grappling with a prolonged sales decline as users hold onto older models for longer periods.
Wedbush analyst Dan Ives noted, “This iPhone 16 release is all about Apple Intelligence and launching the consumer AI Revolution from Cupertino,” referring to Apple’s home city. He further said, “In essence, Cupertino will be the gatekeeper of the consumer AI Revolution.”
“Apple Intelligence,” a new suite of software features introduced in June, was showcased at the company’s annual developers conference. At the event, Apple also announced a partnership with ChatGPT creator OpenAI. Cook highlighted, “For years, artificial intelligence and machine learning have been crucial in delivering many features you love. In June, we launched Apple Intelligence, our powerful new personal intelligence system, which will have an incredible impact.”
In the short term, the AI enhancements include improved image editing, translation, and creative messaging features, though they may not match the ambitious breakthroughs promised by other AI leaders like OpenAI or Google. Ives anticipates that app developers will create applications and services with generative AI features, driving iPhone sales.
Apple is also expected to integrate AI into new AirPods and smartwatches, with new models of these devices announced at the event. By incorporating AI, Apple aims to challenge the notion that iPhone updates are merely incremental hardware and software improvements, according to Techsponential analyst Avi Greengart. He suggested that, in the long run, a “super-powered Siri” could significantly transform the iPhone experience.
Apple’s announcement comes shortly after Google introduced its AI-enhanced Pixel 9 smartphones, positioning them as a rival to the iPhone. Although Pixels hold a small share of the global smartphone market dominated by Samsung and Apple, Google positioned its new devices as a practical demonstration of AI’s real-world benefits. Google senior vice president Rick Osterloh emphasized, “There have been so many promises, so many ‘coming soon,’ and not enough real-world usefulness when it comes to AI — which is why today we’re delivering real results.”
