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Apple unveiled the iPhone 16 at an event Monday, its first smartphone made to run a suite of AI-powered features that the company calls “Apple Intelligence.”
While Apple Intelligence was announced at the company’s July showcase, the iPhone 16 and its new A18 chip are designed to make them available to users, although certain upgrades, like an AI-powered Siri, remain unaccessible. A test version of Apple Intelligence is set to be released in October.
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Apple is looking to drive up its sales and show it can compete on AI with its big rivals, including Google and Huawei. By integrating an advanced AI chip and features directly into the iPhone 16 and upping its emphasis on user privacy, Apple may hope to see off concerns about data security and the ethics of AI, while also regaining its dominance over the global smartphone market. Ultimately, it wants to get consumers back into the habit of buying the latest iPhone.
Of particular concern is China, where consumers are more likely to expect AI features in smartphones as standard, analysts noted. There, Apple’s sales have fallen significantly whereas domestic competitors, like Huawei, have seen their fortunes rise. Huawei is set to launch its latest smartphone on Tuesday in what analysts believe is a direct shot across Apple’s bow.
Apple shares were down by about 1% in afternoon trading.