Apple unveils new iPhone 16 built for AI

Apple on Monday unveiled new iPhones built for generative artificial intelligence as it seeks to boost sales and show it is keeping up in the technology race.

The tech giant has a lot riding on the new iPhone 16 and hopes that customers are enticed to buy the latest models, attracted by new AI powers.

"We are thrilled to introduce the first iPhones designed from the ground up for Apple Intelligence and its breakthrough capabilities," Apple chief executive Tim Cook said at an event at the iPhone maker's Silicon Valley headquarters.

"Apple Intelligence" is a new suite of software features for all devices that was announced in June at the company's annual developers conference, where it also announced a partnership with ChatGPT-maker OpenAI.

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The features will be available as a software download on the iPhone 16 and other premium models next month, but only as a test and in English. Other languages would follow down the road. In the short-term, the new powers would include AI-infused image editing, translation, and small, creative touches in messaging, but not more ambitious breakthroughs promised by other AI players, such as OpenAI or Google. The features are similar to tools recently released by Meta, Microsoft, and Google, which can produce well-crafted content simply by querying in everyday language. "I think that people are going to love what we're doing with Apple Intelligence," Cook told AFP at the event. "When you start using it, it just changes your life."

The features are similar to tools recently released by Meta, Microsoft, and Google, which can produce well-crafted content simply by querying in everyday language. The new iPhones will also feature a new Camera Control Button that can automatically search for things taken by photo or add a calendar item based on the photo of a concert poster.

"The AI features today are incremental, but going forward they look to be transformative," Techsponential analyst Avi Greengart said of capabilities coming to new iPhones. Longer term, Apple could dramatically change the iPhone experience with a "super-powered Siri" working across all the apps, Greengart said. Launched more than 12 years ago, Siri has come to be seen as a dated feature, overtaken by a new generation of assistants such as GPT-4o, OpenAI's latest offering.

New iPhone 16 models start at $799 and will be available starting September 20, according to Apple.

The company also announced new models of Apple Watch and AirPods at the event, highlighting coming health benefits like hearing protection and detecting sleep apnea.

Apple shares appeared unmoved by the iPhone event.

- 'More personal' - With $39 billion in sales last quarter, the iPhone counts for roughly 60 percent of Apple's revenue and remains the main entryway to the company's services, such as the App Store or Apple TV, which are becoming a growing part of its business.

Apple is only just coming out of a long sales slump as users increasingly stick with older models.

Apple's announcement closely follows Google, which last month unveiled AI-infused Pixel 9 smartphones, its challenge to the iPhone.

Pixels account for a tiny sliver of the global smartphone market dominated by Samsung and Apple, but Google argued its new line is a chance to answer what -- after all the hype -- AI can actually do for customers.

Samsung has also showcased AI across a range of its consumer electronic products as it looks to extend its leadership in global smartphone sales.

"On certain things, Apple is behind (on AI features)," Creative Strategies analyst Carolina Milanesi told AFP.

"But from a usability perspective, Apple's tools are more personal and integrated into the device. That is where the difference is and that takes longer (to design)," she added.

Apple and technology companies around the world are racing to add AI to products, and phones are expected to be among the most important battlegrounds. The Cupertino, California-based company also is betting the AI feature will drive consumers to upgrade amid a slowdown in iPhone sales.

Apple Intelligence, the company's AI software, will be used to improve Siri as well as enhance features such as understanding and identifying objects captured by the phone camera, executives said. A test version of Apple Intelligence will be available in the U.S. version of the English language next month. It will be available for other localized versions of English in December, with versions in languages including Chinese, French, Japanese, and Spanish next year.

The iPhone 16 and 16 Plus will cost the same as the models they replace and use a new chip and an aluminum case.

A customizable button that can control the camera was one of the most touted hardware features in a format that looks similar to previous models.

The higher-end 16 Pro and 16 Pro Max are made from titanium and have more AI capabilities, such as offering suggestions on how to set up a photo shoot more effectively and audio-editing capabilities aimed at professional-level video production.

Apple's new iPhone chips use the latest version of Arm's architecture that includes specific features to speed AI applications. "Existing iPhone users who have had their device for 3-4 years will definitely be enticed to upgrade, even if some things are rolling out later, as this will future-proof their device for AI," said International Data Corp analyst Nabila Popal.

Still, several analysts described the delays in features as keeping many potential buyers on the sidelines initially.

"You might see people wait a little bit to see how these things work out, how well they function, and then they'll start to investigate it. But I don't think we'll see the mad rush that we've seen in years past," said TECHnalysis Research founder Bob O'Donnell.

By comparison, Huawei's website showed on Monday that it had garnered more than 3 million pre-orders for its Z-shaped tri-fold phone ahead of its official unveiling. This underscores Huawei's ability to navigate U.S. sanctions and solidifies its position against Apple in China, where consumers are hankering for more AI features and are willing to pay for them.

WATCHES AND AIRPODS

Apple also unveiled new Watches and AirPods with health-focused capabilities, as well as hardware-design improvements. Apple highlighted the Watch's ability to discover longer-term health conditions such as sleep apnea as well as detecting and responding to emergencies such as a fall.

As it updated AirPods, Apple rolled out hearing-aid features that it has submitted for U.S. regulatory review. Apple fans globally have been waiting to see the new phones with AI. IPhones accounted for more than half of Apple's $383 billion sales last year.

"While Android phones may have some of these features, Apple has packaged them well and will be able to market them far more broadly," said D.A. Davidson analyst Gil Luria.

The iPhone 16 lineup is the first Apple smartphone designed around these AI features though those are expected also to be available on iPhone 15 Pro and Pro Max, the top-end versions of the previous-generation devices.