Apple is starting to worry that its iconic iPhone might be getting a little too predictable. Over the past seven years, the iPhone has stayed mostly the same, with only minor improvements to its cameras, processors, and battery life.
But on Monday, Apple aimed to shake things up by unveiling its first iPhone models built specifically for artificial intelligence, a point CEO Tim Cook highlighted in his opening remarks.
Sticking with its pandemic-era tradition, the company hosted a prerecorded launch event from its Silicon Valley headquarters to introduce the iPhone 16, which comes in four versions, all optimized for Apple Intelligence, the company’s generative AI system. Apple says these new phones will offer features like smarter message sorting, AI-generated recommendations, and a more advanced Siri that functions as a stronger virtual assistant.
In addition to the new iPhones, Apple also launched the Apple Watch Series 10, boasting a bigger and brighter display that’s 10% slimmer than the previous model. They also unveiled the new AirPods Pro, which can double as a professional-grade hearing aid and automatically reduce loud noises, such as those at concerts or construction sites—a first for Apple.
Betting on AI to Boost Sluggish iPhone Sales
Apple’s latest phone release is a crucial moment for the company, especially since sales have been slow since 2021. The last major boost in iPhone sales came when they introduced 5G technology.
Recently, Apple has faced challenges as iPhone users are holding onto their devices longer. In response, the company has reshuffled its engineering teams to prioritize artificial intelligence, betting that AI’s ability to generate images, write software, and answer questions will drive demand for new products.
With these announcements, Apple is aiming to play a key role in bringing AI into everyday use. While companies like Microsoft, Google, and Samsung have already added generative AI to their products, widespread adoption hasn’t happened yet. However, Apple’s history with digital music players, smartphones, and smartwatches shows it’s comfortable waiting before embracing and popularizing emerging technologies
The Gen AI Kool-Aid Factor
Although AI is a hot topic among consumers right now, it’s still uncertain if most iPhone users will embrace Apple’s new AI features and feel compelled to upgrade their devices.
While companies like Google, Microsoft, and OpenAI have been showing off impressive AI demos for months, it’s unclear if these advancements will actually push people to upgrade their iPhones, or if AI will remain just another “shiny new thing” that skeptical consumers might overlook.
Looking at Apple Intelligence compared to what the company promised back in June, the iPhone 16 actually has fewer features available at launch than expected.
Starting next month, users will be able to search for photos more easily by describing them to Siri, get summarized notifications, and receive writing suggestions from their phones. AI will also enable the camera to identify specific types of plants, flowers, and dog breeds.
Will Consumers Trade Privacy for AI Convenience?
For users to fully enjoy the benefits AI offers, they’ll need to allow access to more personal information on their smartphones than ever before. It’s still uncertain whether most people are willing to make these privacy trade-offs for the enhanced experience.
More features will be introduced over time. For instance, Siri will be able to handle tasks that involve personal details, like pulling flight info from a family member’s text and checking real-time arrival updates with the airline.
Meanwhile, for requests that don’t require sensitive data, ChatGPT will take over, thanks to Apple’s partnership with OpenAI earlier this year.
Apple’s Cautious Approach to Generative AI
Apple’s approach to generative AI with the iPhone is notably cautious compared to some of its rivals.
Just last month, Google introduced its latest Pixel phone, packed with features like a conversational virtual assistant, tools for editing people into photos, and the ability to handle complex questions through its AI chatbot, Gemini.
That said, Google hasn’t been without its own missteps—its AI has occasionally produced results that are more ridiculous (or unsettling) than helpful.
New iPhones 16 Models Feature Modest Updates
Apple has unveiled the iPhone 16 in four models, all featuring a new, redesigned camera button.
The standard iPhone 16 and iPhone 16 Plus come with a stronger camera, faster processor, and a physical “Action” button that can be customized for quick access to features like the flashlight.
On the higher end, the iPhone 16 Pro and Pro Max start at $999 and $1,199, respectively. These models boast slightly larger displays, bigger batteries, and the ability to record audio at studio quality, making them ideal for users involved in computational video and photography. This feature further solidifies the Pro series’ reputation as the go-to choice for creatives.
Both Pro models use the same powerful A18 Pro chip, driving Apple’s Intelligence capabilities. Meanwhile, the standard iPhone 16 is powered by the A18 chip. The performance gap between the higher-end Pro models and the more affordable ones is less noticeable this year compared to previous generations.
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Apple’s International Challenges
As the world shifts into the era of generative AI, Apple is facing new challenges. For most of the iPhone’s 17-year existence, the company has maintained a single global software system with regular updates. But now, more countries are demanding that AI-related data and infrastructure be stored within their borders.
It’s reasonable to expect that, over time, AI systems will become more attuned to users’ linguistic and cultural differences. This could mean Apple will need to develop more region-specific software for iPhones sold in different countries.
This presents a significant technical challenge, requiring Apple to invest heavily in resources to manage the increased software complexity.
At its recent launch event, Apple announced that an initial update to its AI system, Apple Intelligence, will be available in the U.S. next month. Later this year, it plans to expand the rollout to English-speaking countries in Europe, the Pacific Rim, and South Africa, with other regions not expected to receive the update until next year.
The Untested Future of Apple Intelligence
Apple’s new AI-powered features are making iPhones smarter, more personal, and better at protecting user privacy, which all sound like big wins for users. But whether these upgrades will actually boost iPhone sales is still up for debate.
Tech enthusiasts and loyal Apple fans might jump at the chance to upgrade, but for the average buyer — especially those who aren’t looking to splurge — the improvements might not feel game-changing enough to justify a new purchase. With the smartphone market already flooded, it’s hard to say if these tweaks will sway many customers.
In the end, Apple’s success with its latest iPhones will depend on more than just shiny new AI features. Pricing, the state of the economy, and competition from brands like Samsung and Google will all play a role.
Whether or not Apple’s AI gamble will pay off is still uncertain, but given its powerful marketing and loyal customer base, the company might just pull it off.
