Apple celebrates the iPhone 16 as a revolutionary AI phone, finally catching up with competitors Google and Samsung, who already have their own AI devices on the market. However, Apple has two advantages.
The iPhone 16 is fundamentally an AI device, repeated CEO Tim Cook on Monday like a mantra.
The introduction of the new iPhone is the most important event at Apple every year, as the world’s largest technology company owes more than half of its recent revenue of 383 billion dollars to the smartphone.
However, 17 years after its invention, it is becoming increasingly difficult to reinvent and market the iPhone year after year – sales have consequently stagnated at a high level for some time.
The iPhone 16 presented on Monday appears at first glance to be little different from the last seven models. Yes, the camera is better again, and a new touch-sensitive camera button on the side acknowledges that the smartphone is primarily a camera for many.
Inside, however, the 16 model has a chip that, according to Apple, makes it a completely new device: the in-house developed A18 silicon chip, which is based on powerful three-nanometer chip technology. This makes the iPhone 16 faster than some desktop computers and enables “multiple generative (AI) models to run on the iPhone in your pocket,” as Apple’s software chief Craig Federighi put it. The new iPhone is fundamentally an AI device – this message was repeated numerous times by Federighi, CEO Tim Cook, and other Apple managers during the approximately 100-minute presentation.
Coupled with a powerful software update, the iPhone 16 is set to become Apple’s AI machine and usher in the era of “Apple Intelligence,” as the company calls its version of the technology.
In short videos, the company showed a future where the iPhone summarizes documents, emails, and even phone calls for us; where you can ask the voice assistant Siri, “When does my mother land today?”; and where a smart camera lens explains to the viewer what dog breed they are currently looking at. For now, the new AI is supposed to be available only in English, with versions in French, Japanese, and Spanish already in the works.
No sales in the EU and China
Those hoping that Apple would finally make a breakthrough in the AI sector will be disappointed. Many of Apple’s AI features are still futuristic. When the new iPhone is delivered on September 20, the software – the iOS 18 operating system – will not yet be available. It’s like selling a new television without a cable connection.
When the software update iOS 18 is launched in October, it will feature fewer AI functionalities than announced at the developer conference in June. For instance, the Siri voice assistant will apparently not be ready until 2025, and Apple users will not be able to test the collaboration with OpenAI this year.
Moreover, Apple Intelligence will not be available in two key markets for the foreseeable future: the EU and China. Apple cited the regulation of the Digital Markets Act as reasoning for the European market. “We are concerned that the interoperability requirements could force us to compromise the integrity of our products in a way that jeopardizes user privacy and data security,” the company stated. In China, Apple must find another local partner, as the partnership with the California company OpenAI is not accepted there. According to “Bloomberg,” Apple is in discussions with Baidu and Alibaba.
It is unclear whether Apple is consciously releasing new AI features slowly or simply lagging behind the competition. The fact is: those comparing their iPhone 16 with Google’s recently introduced AI phone Pixel 9 see the latter as superior – the device already boasts smart camera lenses, advanced photo editing capabilities, and options to interact with the chatbot Gemini. Samsung also launched its AI phone back in January. Twenty-two months after the launch of ChatGPT, the AI revolution has yet to make its way to the iPhone.
Two arguments may keep users with Apple
Should Apple be worried that users might leave because of this? Two points speak against it.
First, Apple differentiates itself from competitors by processing most user AI queries directly on the device rather than sending them to an external data center for answers, thus allegedly better protecting user privacy and data – an important promise from a company that advertises: “Privacy. That’s iPhone.”
Given the treasure trove of personal data we store on our smartphones, that’s an attractive promise. Only for queries related to general knowledge will Apple’s AI cooperate with external partners like OpenAI in the US.
Secondly, it pays off for Apple that it has locked its users in a vast ecosystem centered around the iPhone. Those switching to an AI smartphone from a competitor today must accept that their Apple Watch and MacBook will no longer function smoothly with the new smartphone.
However, even if users patiently wait for Apple’s AI, it is questionable whether they will really switch to the iPhone 16 now – or whether they will wait for the 17 model when the technology is more mature and widely available. This means that the long-awaited growth impulse for the smartphone may take longer to materialize.
Other important announcements from Apple:
- New smartwatch: The Apple Watch Series 10 features a larger, thinner OLED screen and is now equipped with an S10 silicon chip that supports “Apple Intelligence.” The software can now also detect sleep apnea, a disturbance in breathing during sleep. Price starting at 449 francs.
- New headphones: The Bluetooth headphones AirPods 4 come in a version with active noise cancellation, which blocks out background noise and recognizes conversations. Calls can be accepted or declined with a nod or shake of the head. Additionally, Apple introduces a new version of the AirPods Pro: the second generation of these headphones increasingly functions as a smart hearing aid and can adjust the audio volume based on the user’s hearing profile. In noisy environments, it automatically lowers the volume for protection. Price starting at 129 francs.