Apple’s biggest fear is that its vaunted iPhone has become too predictable. For the most part, it has remained the same for the previous seven years, with incremental updates to the camera, processor and battery life.
On Monday, however, Apple tried to break free of that prediction by unveiling the first iPhone models designed for artificial intelligence “from the ground up,” a phrase CEO Tim Cook used in his opening remarks.
In keeping with its previous Covid-era virtual product launches, the company hosted a pre-recorded video from its Silicon Valley headquarters to unveil the iPhone 16, available in four flavors optimized for Apple Intelligence, an artificial intelligence-based generative system. According to Apple, the phone will have improved capabilities such as sorting messages, writing recommendations and an updated Siri, making it a more powerful virtual assistant.
The company also unveiled the Apple Watch Series 10, which has a bigger, brighter display that’s about 10% thinner than its predecessor, the Series 9. Apple also unveiled a new AirPods Pro model that can act as a professional-grade hearing aid (Apple’s first foray into this market), as well as automatically reduce noise levels at concerts or nearby construction sites.
Betting on AI to Boost Sluggish iPhone Sales
New phone releases are crucial for Apple as sales slow from 2021 onwards. The last time the company saw significant year-over-year growth in iPhone sales, it was largely due to the rollout of 5G.
Apple has been struggling lately as iPhone owners hold on to their phones for too long. By restructuring its engineering teams to focus on artificial intelligence, it is making a significant bet that the technology, capable of creating images, writing software and answering questions, will convince consumers to buy new gadgets.
With these announcements, Apple is trying to play an important role in bringing AI to the masses. Although Microsoft, Google and Samsung have added generative AI features to their products, these features have not yet been widely adopted. However, as digital music players, smartphones and smartwatches have shown, Apple has shown in the past that it is willing to wait to embrace and promote emerging technologies.
The Gen AI Kool-Aid Factor
Although AI is now a buzzword for many consumers, the jury is still out on whether most mainstream users will drink the Apple Intelligence Kool-Aid and upgrade to their current iPhones.
Google, Microsoft and OpenAI have been providing impressive demonstrations for months. However, it’s still unclear whether AI’s benefits will encourage users to upgrade their iPhones or remain a “bright, shiny object” for skeptical consumers.
In that light, when compared to Apple Intelligence that the company said when it unveiled the technology in June, the iPhone 16 has fewer features at launch.
Starting next month, users will be able to quickly find photos by describing the image to Siri, receive integrated notifications, and receive writing tips from their phone. Also, thanks to artificial intelligence, the camera will recognize certain types of plants, flowers or dog breeds.
Will consumers give up privacy for the benefits of AI?
Of course, all of these benefits require ordinary users to provide an unprecedented level of access to personal information on their smartphones, and it remains to be seen whether they are willing to sacrifice this privacy in exchange for taking full advantage of AI. Offer
Other features will be added gradually. For example, Siri can handle phone requests that include personal information, such as retrieving flight information from a family member’s text message and contacting an airline to find real-time arrival details.
Requests that don’t include personal information will be sent to ChatGPT, available on iPhone following Apple’s partnership with OpenAI in the spring.
Apple's cautious approach to generative AI
The iPhone’s limited feature set reflects Apple’s conservative approach to generative AI compared to its competitors.
In contrast, Google unveiled the Pixel phone last month, which includes a virtual assistant for communication, the ability for users to edit photos and ask complex questions using the company’s generative chatbot, Gemini.
Google has also seen AI missteps, such as a chatbot that produces hilarious (and sometimes alarming) results.
New iPhones 16 Models Feature Modest Updates
Apple has launched the iPhone 16 in four variants, each with a redesigned camera button.
The entry-level devices, the iPhone 16 and 16 Plus, have more powerful cameras, faster processors and a physical action button that users can customize to instantly access features like the phone’s flashlight.
The iPhone 16 Pro and Pro Max are the more expensive models, starting at $999 and $1,199, respectively. They have slightly larger displays, longer batteries, and the ability to record studio-quality audio. The latest feature will undoubtedly strengthen the iPhone Pro brand as a device for users with computing applications for video and photography.
The Pro phone has the same processor that powers Apple Intelligence. The A18 chip is found in the standard iPhone 16, while the A18 Pro processor is found in the iPhone 16 Pro. Compared to previous years, the update results in a less noticeable difference between the capabilities of higher-priced and lower-priced phones.
Apple’s International Challenges
Apple faces additional challenges as the world enters the generative AI era. Over the 17 years of the iPhone’s existence, the company has developed a single software system that it updates around the world. However, more and more countries are demanding that data and computer systems based on artificial intelligence be kept within their borders.
It is logical to assume that over time, AI systems will eventually begin to recognize the linguistic and cultural differences of users. For this development, Apple may need to develop more specialized software for countries where the iPhone is sold
This implies the enormous software complexity that an organization may have to prepare from a resource perspective.
During the presentation, Apple indicated that a preview software update for Apple Intelligence will be available in the US starting next month. Later this year, Apple plans to expand its Apple Intelligence rollout to English-speaking countries in Europe, the Pacific and South Africa, leaving most countries without Apple Intelligence until next year.
The Untested Future of Apple Intelligence
Apple Intelligence offers significant improvements in user experience through innovative AI-driven features, personalized interfaces and enhanced privacy, but its impact on driving iPhone sales remains a critical issue.
These innovations could be a compelling reason to upgrade for tech enthusiasts and users deeply invested in the Apple ecosystem. For more price-sensitive or casual consumers, however, the incremental nature of these improvements—especially in the saturated smartphone market—may not be enough to drive widespread sales growth.
Ultimately, Apple’s ability to maintain strong iPhone sales will depend on its application of advanced AI features and broader market factors such as pricing strategies, economic conditions and competition from rivals such as Samsung and Google.
Whether consumers will be willing to take the bait of the AI generation remains to be seen – although Apple’s well-known messaging and brand strength could give it a real chance.