On Monday, Apple officially joined the artificial intelligence wave with the unveiling of its new iPhone 16 lineup. This launch represents Apple’s latest effort to embrace a trending technology and turn it into a cultural phenomenon.
The four iPhone 16 models will feature advanced chips designed to power a suite of AI tools. Apple aims for these tools to enhance the iPhone’s appeal and reverse a recent dip in sales. The new AI capabilities are set to transform Siri into a smarter virtual assistant, automate routine tasks, and introduce creative features like instant custom emojis.
Apple CEO Tim Cook, after receiving a standing ovation at the event, expressed confidence that the AI package would bring “innovations that will make a true difference in people’s lives.” However, most of the AI features won’t be available immediately when the new iPhones, priced between $800 and $1,200, hit stores on September 20. The AI functions will be rolled out gradually through a free software update to iOS 18 from October to December, with U.S. English as the primary language initially and other languages following in 2025.
This move aligns with Apple’s strategy, previewed at its developers’ conference in June, to build excitement around its latest iPhones amid a rare sales slump. Since then, rivals like Samsung and Google have made significant AI advances, but Apple is confident it can replicate the success it had with smartphones 17 years ago by making AI a must-have technology.
Apple’s AI approach, branded as “Apple Intelligence,” shares similarities with features found in Samsung’s Galaxy S24 and Google’s Pixel 9, though Apple aims to stand out with its commitment to privacy. Most AI functions will be processed directly on the iPhone, reducing reliance on external data centers and minimizing risks to personal data. For more complex tasks, Apple has partnered with OpenAI, allowing users to tap into the ChatGPT chatbot.
While the iOS 18 update will be free, only the iPhone 16 models and high-end iPhone 15 models will have the chip needed to run Apple’s new AI tools, pushing many consumers to upgrade.
The anticipation of strong demand for iPhone 16 during the holiday season has already driven Apple’s stock up by over 10% since the June developers’ event. Wedbush Securities analyst Dan Ives predicted that the AI-powered iPhones could push Apple’s market value past $4 trillion next year, representing a 20% increase from the current stock price of $220.91.
In addition to its iPhones, Apple also introduced a new version of its Apple Watch, which will include a feature to detect sleep apnea, and updated AirPods Pro that can function as hearing aids through an upcoming software update.