Apple Unveils iPhone 16 Featuring Test AI Software Launching This Year and Next, Reports Reuters

By Max A. Cherney, Kenrick Cai

CUPERTINO, California – Apple recently introduced its highly anticipated iPhone 16, enhanced with artificial intelligence features, and announced improvements to its Siri personal assistant as it prepares to launch new software for testing next month.

"The next generation of iPhone has been designed for AI from the ground up, marking the start of an exciting new era," stated Chief Executive Tim Cook at the product launch event.

Apple’s stock closed at $220.91, showing little fluctuation. This event took place just hours before Huawei launched a tri-fold phone, highlighting the intense competition Apple faces. To date, Apple has not disclosed an AI partner in China to support the iPhone 16 models.

Companies around the globe, including Apple, are racing to integrate AI into their products, with smartphones emerging as a crucial area of competition. Apple believes that AI features will encourage consumers to upgrade their devices, especially amidst a slowdown in iPhone sales.

Apple’s AI software, branded as Apple Intelligence, aims to enhance Siri and improve functionalities like object recognition and understanding through the phone’s camera, according to executives.

A test version of Apple Intelligence will begin rolling out in the U.S. for English users next month, with other localized English versions expected in December and translations into languages like Chinese, French, Japanese, and Spanish set for next year. Apple has indicated that enhancements, including those for Siri, will be introduced gradually but has not provided a timeline for a full rollout.

The iPhone 16 and 16 Plus will maintain the pricing of previous models while featuring a new chip and aluminum casing. One of the standout hardware advancements is a customizable button that controls the camera, though the overall design remains similar to its predecessors.

In contrast, the higher-end iPhone 16 Pro and 16 Pro Max are crafted from titanium and packed with additional AI capabilities, such as recommending optimal photo shoot setups and advanced audio-editing tools aimed at professional video production.

The latest chips in these iPhones utilize the newest Arm architecture tailored to accelerate AI applications.

Analyst Nabila Popal from International Data Corp suggested that existing iPhone users with devices that are three to four years old might be persuaded to upgrade, despite some features being released later, as this would future-proof their devices for AI.

However, some analysts cautioned that the delayed feature launches could keep potential buyers hesitant at first. Bob O’Donnell, founder of TECHnalysis Research, noted that consumers might wait to see how well the features perform before making a purchase, unlike the enthusiastic rush seen in previous years.

In contrast, Huawei reported over 3 million pre-orders for its new Z-shaped tri-fold phone before its official release, demonstrating its resilience against U.S. sanctions and strengthening its position in China, where consumers are eager for AI features and willing to invest in them.

In addition to smartphones, Apple unveiled new Watches and AirPods with health-focused capabilities and hardware improvements. The new Watch can identify long-term health issues such as sleep apnea and respond to emergencies like falls.

The updated AirPods include hearing-aid features currently under U.S. regulatory review.

Globally, Apple enthusiasts are eager to see the new AI-enhanced iPhones, which accounted for more than half of the company’s $383 billion in sales last year. Analyst Gil Luria from D.A. Davidson pointed out that while Android devices may offer similar features, Apple’s superior marketing and packaging could give it an edge.

However, Apple faces specific challenges in China. eMarketer’s Gadjo Sevilla noted that Apple fell out of the top five smartphone vendors in the region for the first time in Q2, with domestic competitors taking all five spots. Moreover, Apple Intelligence will require approval from Chinese authorities before it can be launched, which may hinder its initial adoption in the country.

Earlier this year, Apple significantly reduced prices in China in response to heightened competition and government restrictions.

The iPhone 16 series is the first to be designed with these AI features, although similar functionalities are expected to be available on the previous generation’s iPhone 15 Pro and Pro Max models.

Competitors such as Google’s Alphabet are also showcasing AI innovations aiming to challenge Apple’s leadership in the premium smartphone sector. Google’s recent Pixel event emphasized AI features like Gemini Live, enabling real-time voice interactions with a digital assistant. Many of these features have also been made available for other Android devices from manufacturers like Samsung and Motorola.

Despite the pressures, Apple continues its development of AI-driven innovations, although earlier this year, it announced a delay in the rollout of certain AI capabilities in Europe due to regulations from the European Union.

As the smartphone market evolves, Apple remains poised to enhance its offerings, even as rival companies intensify their efforts to capture consumer interest.