Apple on Monday announced a new iPhone designed with generative artificial intelligence, as the company hopes to boost sales and show it’s keeping up in the technology race.
The tech giant is taking a big shine to what is said to be the iPhone 16 and is hoping new AI powers will entice customers to buy the latest models.
“We’re thrilled to introduce the first iPhones designed from the ground up for Apple Intelligence and its breakthrough capabilities,” Apple CEO Tim Cook said at an event at the iPhone maker’s headquarters in Silicon Valley.
With revenue of $39 billion in the most recent quarter, the iPhone accounts for about 60 percent of Apple’s revenue. The device remains the primary gateway to the company’s services, such as the App Store and Apple TV, which are an increasing part of the company’s business.
Apple is just emerging from a prolonged sales slump as users continue to hold on to older models for longer.
“The launch of iPhone 16 is all about Apple Intelligence and unleashing the AI revolution for consumers in Cupertino,” Wedbust analyst Dan Ives said in a note to investors, referring to Apple’s home city.
“In essence, Cupertino will be the gatekeeper of the AI revolution for consumers.”
“Apple Intelligence” is a new set of software features coming to all devices that was announced in June at the company’s annual developers conference, where a partnership with ChatGPT maker OpenAI was also announced.
“For years, artificial intelligence and machine learning have been essential to delivering so many of the features and experiences you love,” Cook said.
“In June, we launched Apple Intelligence, our powerful new personal intelligence system, which will have an incredible impact.”
In the short term, this involves AI-assisted image editing, translations and small, creative tweaks to reporting, but not the more ambitious breakthroughs promised by other AI players, such as OpenAI or Google.
Ives expects software makers to produce apps and services tailored to generative AI capabilities, which will boost iPhone sales.
Apple is expected to adapt new AirPod earbuds and smartwatches to take full advantage of the capabilities of AI and the digital assistant Siri.
During the event, the company announced new models of the Apple Watch and AirPods.
By adding AI capabilities, Apple hopes to “break the expectation” that the iPhone launch is “just a continuous improvement of hardware and software,” said Avi Greengart, an analyst at Techsponential.
In the longer term, Apple could dramatically change the iPhone experience with a “super-powerful Siri” that works across all apps, Greengart said.
– Pixel Power –
Apple's announcement comes hot on the heels of Google, which last month unveiled the Pixel 9 AI-powered smartphones that rival the iPhone.
Pixels are just a small part of the global smartphone market, which is dominated by Samsung and Apple. Still, Google claims the new product line offers an opportunity to answer the question of what AI can actually do for customers after all the hype.
“There has been so much promise, so much ‘coming soon’ news, and not enough real help when it comes to AI, so today we’re getting real,” said Rick Osterloh, senior vice president of Google Devices, at the Pixel 9 launch.
Samsung has also demonstrated AI in a range of its consumer electronics products, in a bid to extend its leadership position in global smartphone sales.
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