Photo from Apple

Apple revealed its latest iPhone 16 during the “It’s Glowtime” event on Monday, highlighting the integration of artificial intelligence (AI) as a key feature to attract customers and revive sluggish sales.

Apple’s CEO Tim Cook states, “We are thrilled to introduce the first iPhones designed from the ground up for Apple Intelligence and its breakthrough capabilities.” This announcement comes as Apple’s iPhone sales have recently seen a slump, with many users holding onto older models longer than expected.

The iPhone 16’s AI features include advanced image editing, translation services, and creative messaging enhancements. These functionalities are powered by Apple’s new “Apple Intelligence” suite, which was first announced in June. This suite also incorporates OpenAI’s ChatGPT into Siri, enabling more sophisticated text generation and query handling.

Additionally, the camera control button, described as a “DSLR-like button,” lets you simplify the camera’s UI and use the zoom functionality by just touching and sliding on the button.

The new models also come equipped with a faster A18 processor, which is essential for handling the advanced AI functionalities. The base iPhone 16 starts at $799, while the Plus version is priced at $899. Both models are available in a variety of colors, including white, black, green, pink, and blue.

The company is also rolling out updates to its Apple Watch and AirPods but no news regarding any new iPhone SE was announced yet.

Wedbush analyst Dan Ives anticipates that the integration of generative AI capabilities into applications and services will stimulate iPhone sales backup. He wrote in a letter to investors that “the unveiling of the iPhone 16 is all about Apple Intelligence and the unleashing of the consumer AI Revolution through Cupertino,” alluding to Apple’s hometown.

Despite these innovations, Apple faces stiff competition from other tech giants like Google and Samsung, who have already integrated AI features into their devices. Google’s recent launch of the AI-infused Pixel 9 and Samsung’s AI-driven consumer electronics have set a high bar for Apple to meet.

But Apple remains optimistic. Cook emphasizes the company’s commitment to privacy, stating that many of the AI models run entirely on-device, ensuring user data is not stored or shared with Apple. This focus on privacy could be a significant selling point for users concerned about data security.

Analysts are also cautiously optimistic about the new release. Ben Wood, chief analyst at CCS Insight, thinks the iPhone’s new shutter gimmick might be easily dismissed. However, he believes that the combination of Apple Intelligence and new camera features will encourage upgrades from loyal Apple customers.

“Particularly as Apple is positioning this latest update as being a future-proof purchase for customers wanting to get Apple Intelligence features as they roll out over the next few years,” he added.

Annette Zimmermann from Gartner, on the other hand, warns that rolling out AI features before they are fully ready could risk Apple’s reputation.

The iPhone 16 series is set to hit the market on September 13 for pre-orders. The Apple Intelligence features will then be available on operating systems starting in October in the U.S., with a rollout to other countries in the following months.