Apple Embraces AI Trends with New iPhone 16 Lineup
CUPERTINO, Calif. (AP) — Apple has entered the artificial intelligence race with its latest iPhone lineup, representing the company’s effort to capitalize on a technological trend and transform it into a mainstream phenomenon.
The four iPhone 16 models will all feature special chips designed to power a range of AI tools. Apple hopes these tools will make its primary product even more essential and help reverse recent sales declines.
Apple CEO Tim Cook addressing the audience during the product announcement.
Apple’s AI enhancements are designed to improve Siri, its virtual assistant, making it smarter and more versatile. The new features aim to automate complicated tasks and offer options such as generating custom emojis quickly.
Apple CEO Tim Cook on stage at the Apple headquarters.
Following a standing ovation at Monday’s event, Apple CEO Tim Cook stated that the AI package would offer “innovations that will make a true difference in people’s lives.” However, these features will not be immediately available when the new iPhones—priced between $800 and $1,200—are released on September 20.
Most of Apple’s AI capabilities will be included in a free software update to iOS 18, the operating system powering the new iPhone 16 models, which will be available from October through December. The initial release will feature U.S. English, with updates for other languages planned for next year, according to Apple.
This approach was previewed by Apple three months ago during a developers conference, aiming to increase anticipation for the upcoming iPhone generation amid a period of slower sales for the devices. Since Apple’s June conference, competitors such as Samsung and Google have made significant advances in AI. This technology is widely predicted to bring the most significant shifts in computing since the first iPhone was released 17 years ago.
Attendees await the product announcement at the Steve Jobs Theater.
Just as Apple transformed rudimentary smartphones into an essential technology in the 21st century, the company is betting it can achieve a similar level of success with its entry into artificial intelligence. In an effort to distinguish itself from early AI leaders, the technology integrated into the iPhone 16 is being promoted as “Apple Intelligence.” While the branding is unique, Apple’s strategy mirrors several existing features found in the Samsung Galaxy S24, released in January, and the Google Pixel 9, which launched last month.
“Apple could have delayed another year for additional development, but the initial response to AI-powered devices from companies such as Samsung has been positive, and Apple is looking to benefit from this market,” stated Paolo Pescatore, an analyst at PP Foresight.
As Apple explores this new field, it intends to maintain its long-standing commitment to user privacy by tailoring its AI to process most technological enhancements on the device itself. This approach minimizes reliance on extensive computer networks located in remote data centers. For tasks requiring a connection to a data center, Apple promises a secure process ensuring no personal data is stored remotely.
While controlling how personal data is utilized by its AI tools reduces the likelihood of data misuse or exploitation, it does not provide absolute security. For instance, devices could still be stolen or hacked through digital means.
For those looking for broader AI tool access, Apple is collaborating with OpenAI, giving users the option to use the ChatGPT chatbot for more complex tasks.
Although Apple is releasing a free version of its operating system to support its on-device AI features, the chip required to run the technology is limited to the iPhone 16 series and the advanced iPhone 15 models from last year. This means many consumers interested in Apple’s AI will need to purchase an iPhone 16 model. Investors anticipate this will boost demand during the holiday season.
The expected sales increase is a significant factor behind Apple’s stock price growth of over 10% since the June developers conference. This includes a slight rise Monday after the shares initially declined after the latest iPhones were showcased. Wedbush Securities analyst Dan Ives expressed strong confidence in the new AI iPhones, predicting that they would push Apple’s market value past $4 trillion next year for the first time. This forecast suggests around a 20% rise from Monday’s closing price of $220.91 for Apple’s stock.
In addition to its latest iPhones, Apple released a new version of its smartwatch with features to help detect sleep apnea, as well as the next generation of its wireless headphones, the AirPods Pro, which will be capable of working as a hearing aid through an upcoming software update.
