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Apple joins AI race with iPhone 16, eyes holiday sales boost

Apple iPhone 16 AI/ iPhone 16 Apple Intelligence/ iPhone AI capabilities/ Apple iPhone AI features/ Newslooks/ CUPERTINO/ Calif./ Apple introduced its iPhone 16 lineup, embracing artificial intelligence with features designed to enhance Siri and automate tasks. The new devices, powered by AI-focused chips, will roll out starting Sept. 20, with AI functions arriving through software updates later in the year. Alongside the iPhone 16, Apple revealed updates to its smartwatch and AirPods, expanding health and hearing capabilities.

Apple CEO Tim Cook talks on the stage during an announcement of new products at Apple headquarters Monday, Sept. 9, 2024, in Cupertino, Calif. (AP Photo/Juliana Yamada)

Apple Embraces AI with iPhone 16: Quick Looks

  • Apple unveils the iPhone 16 lineup, featuring AI-powered tools and Siri enhancements.
  • The company’s “Apple Intelligence” aims to automate tasks like custom emojis, image searches, and notifications.
  • Most AI features will roll out via iOS 18 from October through December, with more languages added in 2025.
  • The iPhone 16 models range from $800 to $1,200 and start shipping on Sept. 20.
  • Apple emphasizes privacy with on-device AI processing, limiting remote data storage.
  • The company also introduced the Apple Watch Series 10 and new AirPods Pro with hearing aid functionality.

Apple joins AI race with iPhone 16, eyes holiday sales boost

Deep Look:

Apple has officially jumped into the artificial intelligence (AI) race, unveiling its much-anticipated iPhone 16 lineup during the “Glowtime” event on Monday. The company hopes that its new AI-powered features, marketed under the banner of Apple Intelligence, will transform the way users interact with their iPhones, similar to how the original iPhone revolutionized the mobile phone industry 17 years ago.

The iPhone 16, available in four models, is powered by the A18 chip, which supports a range of AI tools designed to streamline daily tasks, improve Siri’s functionality, and deliver user-friendly experiences like automated custom emojis and smarter image searches. These features, Apple hopes, will restore the iPhone’s status as an indispensable device, especially amid a recent sales decline.

Speaking to an enthusiastic crowd, Apple CEO Tim Cook promised that these AI innovations will deliver “a true difference in people’s lives,” further fueling excitement for the upcoming iPhone launch. However, these breakthroughs won’t be available immediately when the iPhone 16 hits stores on Sept. 20. Most AI features will roll out as part of a free iOS 18 software update, available from October through December. U.S. English will be the initial language supported, with updates for additional languages arriving in 2025.

AI, Privacy, and Competition

Apple’s AI initiative, branded as Apple Intelligence, aims to differentiate itself from competitors like Samsung and Google by emphasizing on-device processing for AI tasks. This approach is intended to uphold Apple’s longstanding commitment to privacy, reducing reliance on external data centers where personal data could be vulnerable. When external processing is necessary, Apple ensures that no personal data is stored remotely, a feature that sets its AI efforts apart.

Yet, Apple’s AI features are not without competition. Both Samsung’s Galaxy S24 and Google’s Pixel 9, which launched earlier in the year, already offer many similar AI capabilities. According to Paolo Pescatore, an analyst at PP Foresight, Apple’s decision to push its AI rollout ahead of schedule is a strategic move to keep pace with rivals. “Initial take-up of AI-powered devices from the likes of Samsung has been encouraging, and Apple is keen to capitalize on this market,” Pescatore said.

For users seeking more advanced AI capabilities beyond Apple’s built-in offerings, the company is collaborating with OpenAI to integrate the popular ChatGPT chatbot into its ecosystem, expanding options for users who want to leverage AI for more complex tasks.

iPhone 16 and Holiday Demand

Despite the broader AI push, Apple’s stock has seen positive momentum ahead of the holiday season, with investors betting that the iPhone 16 lineup will drive strong sales. In fact, Apple’s stock has climbed over 10% in recent weeks, with a slight increase following Monday’s event.

The iPhone 16 models—priced between $800 and $1,200—are expected to attract consumers seeking the latest AI technology. Apple is counting on this new lineup to reverse a rare sales slump and capitalize on the growing demand for AI-enhanced smartphones. Although iOS 18 will be available as a free update to earlier models, the full range of AI capabilities will only be accessible on the iPhone 16 and select high-end iPhone 15 devices.

Beyond the iPhone: Apple Watch and AirPods

In addition to the iPhone 16, Apple announced updates to its popular Apple Watch and AirPods lines. The Apple Watch Series 10 boasts a larger OLED display for better visibility, and introduces a significant health feature: the ability to detect early signs of sleep apnea. As the Apple Watch continues to focus on health tracking, this new capability is expected to be a game-changer for millions of users with sleep disorders.

Meanwhile, the new AirPods Pro offer a blend of convenience and health-focused updates. Powered by an improved chip, the AirPods 4 provide better audio quality and enhanced noise cancellation. Additionally, the AirPods Pro 2 will be able to function as an over-the-counter hearing aid with a software update. Apple’s push into health-focused tech with its AirPods follows a growing trend of integrating medical-grade features into everyday consumer electronics.

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