Under pressure to revive iPhone sales amid a slump, Apple unveiled its iPhone 16 on Monday, featuring a new external camera button and advancements in artificial intelligence (AI).
CEO Tim Cook emphasized that the new iPhone 16 pushes the boundaries of smartphone capabilities, integrating AI to enhance user experience.
Despite this, Apple’s stock remained flat after the “Glowtime” event, reflecting concerns over the company’s competitive edge in the rapidly evolving AI sector.
Sales of the iPhone, which accounts for about half of Apple’s revenue, have recently declined, falling by 1% over the past nine months.
In response, the new iPhones offer longer-lasting batteries, more powerful processors, and enhanced privacy features designed to leverage AI tools, including new writing and emoji creation features, and integration of OpenAI’s ChatGPT into Siri.
Additionally, Apple announced updates to its Apple Watch and AirPods, introducing features like automatic volume adjustment during conversations and the ability to decline calls with a head shake.
The Pro version of AirPods will soon serve as a “clinical grade” personal hearing aid, pending regulatory approval.
Sales for the iPhone 16 will begin in September, starting at $799, but AI features will only be available on operating systems from October in the US, with a broader rollout, including the UK, in December.
Ben Wood from CCS Insight noted that while some might see the new camera control as a basic upgrade, the integration of AI features and enhanced camera capabilities could convince loyal Apple customers to upgrade.
However, Apple’s slower adoption of generative AI compared to competitors like Samsung and Google means it must deliver these features effectively to maintain its reputation and avoid potential sales losses.
Analyst Annette Zimmermann highlighted the importance of ensuring that these features are fully developed before launch to prevent damaging the company’s standing.
