Apple on Monday announced a new iPhone built around generative artificial intelligence, as it aims to boost sales and show it is ahead in the technology race.
The technology giant has a lot of focus on the iPhone 16 and hopes that customers will be attracted by the new AI powers and will be motivated to buy the latest model.
“We’re thrilled to introduce the first iPhone designed from the ground up with Apple intelligence and its unprecedented capabilities,” Apple CEO Tim Cook said at an event at the iPhone maker’s Silicon Valley headquarters.
With sales of $39 billion last quarter, the iPhone accounts for nearly 60 percent of Apple’s revenue, and remains the main gateway to the company’s services, such as the App Store or Apple TV, which are becoming a growing part of its business.
Apple is recently emerging from a long-term sales slump, as consumers are sticking with older models longer.
“This release of the iPhone 16 is all about Apple Intelligence and unleashing the consumer AI revolution through Cupertino,” Wedbust analyst Dan Ives said in a note to investors, referring to Apple’s home city.
“In essence Cupertino will be the gatekeeper to the consumer AI revolution.”
“Apple Intelligence” is a new set of software features for all devices, announced at the company’s annual developers conference in June, where it also announced a partnership with ChatGPT-maker OpenAI.
“For many years, artificial intelligence and machine learning have been key to delivering 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, these include small, creative attempts at AI-enabled image editing, translation, and messaging, but not the more ambitious breakthroughs promised by other AI companies like OpenAI or Google.
Ives expects software makers to begin building apps and services with generative AI capabilities, which will boost iPhone sales.
Apple is expected to create new AirPod earbuds and smartwatches to take advantage of AI capabilities and the Siri digital assistant.
The company announced new models of Apple Watch and AirPods in this event.
Techsponential analyst Avi Greengart said that by adding AI capabilities, Apple “wants to put an end to the expectation” that the iPhone launch is “only a steady improvement in hardware and software.”
In the long term, Greengart said, Apple could dramatically change the iPhone experience with a “super-powered Siri” that works across all apps.
pixel power
Apple’s announcement comes after Google, which last month unveiled its AI-powered Pixel 9 smartphone as its challenger to the iPhone.
Pixels have a minuscule share of the global smartphone market, which is dominated by Samsung and Apple, but Google argued that its new line was a chance to answer what — after so much hype — AI could really do for consumers.
“When it comes to AI, there have been a lot of promises, a lot of ‘coming soon,’ and not enough real-world help — which is why we’re getting a sense of reality today,” Rick Osterloh, Google’s senior vice president of devices, said at the Pixel 9 launch.
Samsung has also demonstrated AI across a range of its consumer electronics products, as it seeks to extend its leadership in global smartphone sales.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
