Apple (AAPL.O) unveiled its highly anticipated AI-powered iPhone 16 on Monday, signaling a new era in smartphone technology. The announcement came alongside promises of significant enhancements to Siri, the company’s personal assistant, as well as new software set to be tested starting next month.
"The next generation of iPhone has been designed for Apple Intelligence from the ground up," said Chief Executive Tim Cook at the product launch. "It marks the beginning of an exciting new era."
Despite the fanfare, Apple’s stock closed largely unchanged at $220.91. The event also coincided with China’s Huawei unveiling its tri-fold phone, highlighting the competitive pressures Apple faces in global markets. Notably, Apple has not yet announced an AI partner in China to support the iPhone 16’s rollout.
As tech companies worldwide race to integrate AI into products, smartphones have become a key battleground. Apple’s latest device, featuring its AI software Apple Intelligence, aims to reinvigorate sales amidst a recent slowdown. This AI capability will enhance Siri and enable advanced features like object recognition through the camera.
A test version of Apple Intelligence will be available next month in the U.S. for the English language, with broader releases in other languages, including Chinese, French, and Spanish, expected next year. Features will roll out gradually, but no timeline for full deployment was provided.
The iPhone 16 and 16 Plus maintain the same pricing as their predecessors, featuring a new chip, an aluminum case, and a customizable camera button. Meanwhile, the iPhone 16 Pro and Pro Max, built from titanium, boast enhanced AI functionalities for photography and professional video production.
Apple’s new chips, using Arm's latest architecture, are specifically designed to accelerate AI applications. “Existing iPhone users who have had their device for 3-4 years will definitely be enticed to upgrade," said IDC analyst Nabila Popal.
However, some experts believe the delayed feature rollouts could slow consumer adoption. "We might not see the mad rush that we’ve seen in years past," said TECHnalysis Research founder Bob O'Donnell.
Meanwhile, Huawei reported over 3 million pre-orders for its tri-fold phone, underscoring its resilience despite U.S. sanctions and positioning as a strong competitor to Apple in the Chinese market.
In addition to the iPhones, Apple also introduced updated Watches and AirPods, featuring health-focused improvements such as detecting sleep apnea and emergency response.
Despite the challenges in China and increased competition from Google’s AI-enhanced Pixel phones, Apple remains confident in its ability to captivate its global audience.
