Apple is set to unveil its iPhone 16 lineup today, with a focus on how its flagship devices’ features are combined with artificial intelligence rather than the usual emphasis on hardware upgrades.
The event is being held at the tech giant’s Apple Park headquarters at 10 a.m. PDT (1700 GMT), following its developer conference in June during which the company unveiled Apple Intelligence, its take on generative AI that can generate text, images and other content on command.
It also showcased an enhanced version of voice assistant Siri, featuring integration with ChatGPT, a chatbot developed by Microsoft-backed OpenAI.
The refresh comes at a time when the iPhone is facing stiff competition from Huawei in China, where consumers are craving more AI features and are willing to pay for them. Huawei itself announced its own product just hours after Apple’s event.
Apple Intelligence will need approval from Beijing to be released in the Chinese market. In July, OpenAI blocked access to ChatGPT in China, a move that could impact the chatbot’s integration into Siri.
“The Chinese market has a much higher demand for AI features than the US market,” said Ben Bajarin, CEO and principal analyst at Creative Strategies. “It would be very difficult to bring it to China right away, so they won’t focus on the merits of the hardware.”
iPhones accounted for more than half of Apple’s $383 billion in sales last year, and the new devices are a key update for the Cupertino, California-based company, which is anticipating that AI features will spur consumers to upgrade amid a slowdown in iPhone sales.
In China, Apple aggressively cut prices earlier this year, prompted by government restrictions and rising domestic competition.
The iPhone 16 lineup will be the first Apple smartphones designed around these AI features, though they will also be available on the iPhone 15 Pro and Pro Max, the top-end versions of the previous-generation devices. New versions of the Apple Watch and AirPods are also expected.
“The software side and how Apple structures it is the biggest question,” Bajarin said. “Investors will be watching to see if it’s attractive enough to be larger than the normal upgrade cycle.”
Other rival companies, including Alphabet’s Google, are also showcasing AI features in a bid to end Apple’s dominance in the high-end smartphone market.
Google, the developer of the Android operating system that competes with Apple’s iOS, traditionally announces its Pixel smartphone in the fall. This year, it delayed the event until August, ahead of Apple’s announcement.
Google focused on AI features including Gemini Live, which allows users to have live voice conversations with the digital assistant. Many of the AI ​​features announced by Google were also rolled out to Android-based devices made by manufacturers such as Samsung and Motorola.
“The question is who will be the first to combine a true personal AI assistant with accurate and personalized information,” said Bob O’Donnell, principal analyst at Techanalysis Research.
Apple has so far only shared a timeline for the release of Apple Intelligence in the United States, where it is scheduled to launch on compatible devices in the autumn.
In June, a week after the developer conference, Apple said it would delay the release in Europe due to EU tech regulations.
