Apple Inc. (AAPL.O) on Monday introduced its highly anticipated iPhone 16, powered by its new “Apple Intelligence” artificial intelligence (AI) software. The launch comes just hours after Chinese competitor Huawei’s (HWT.UL) tri-fold smartphone began receiving millions of pre-orders, intensifying competition in the global smartphone market.
“This next generation of iPhone has been designed from the ground up for Apple Intelligence, marking the beginning of an exciting new era,” said Apple CEO Tim Cook during the product launch at Apple Park. The Cupertino-based tech giant is betting heavily on AI to encourage consumers to upgrade their devices amid slowing iPhone sales.
Apple Intelligence, the company’s AI software, enhances Siri’s capabilities by making it more natural, contextually relevant, and personalized. It also improves features such as object recognition through the phone’s camera. “This marks the start of a new era for Siri,” said Craig Federighi, Apple’s software engineering chief. A test version of Apple Intelligence will be available in the U.S. next month, with additional language support, including Chinese, French, Japanese, and Spanish, expected next year.
The new iPhone 16 will feature the A18 chip and have an aluminum back, along with a customizable button for enhanced camera controls. Prices for the iPhone 16 start at $799, while the iPhone 16 Plus will begin at $899. Apple also revealed the iPhone 16 Pro and 16 Pro Max models, made of titanium and featuring the A18 Pro chip with additional AI capabilities. Prices for the Pro models start at $999 and $1,199, respectively.
Huawei Prepares for a Big Launch
Meanwhile, Huawei’s Z-shaped tri-fold phone, set for official announcement on Tuesday, has already garnered over 3 million pre-orders, showcasing Huawei’s resilience in navigating U.S. sanctions and challenging Apple in China. The Chinese market has shown an increased appetite for AI features, with consumers willing to pay for advanced technology.
Market Reactions and Rival Strategies
Despite the buzz around Apple’s latest iPhones, shares of the company were down 1.5% in afternoon trading on Monday. Analysts suggest the introduction of AI features may not be enough to trigger a major upgrade cycle, but the market response to AI-integrated smartphones is being closely watched.
Alphabet’s Google (GOOGL.O), which develops the Android operating system, also recently accelerated its AI integration. Its new Pixel smartphones feature Gemini Live, an AI function enabling real-time voice conversations with a digital assistant, further intensifying competition in the high-end smartphone market.
Apple’s New Watches and AirPods
In addition to its iPhone lineup, Apple unveiled the Series 10 Watch, starting at $399, which is thinner and boasts a 30% larger screen. The company also launched the rugged Watch Ultra 2, priced at $799, as well as updated AirPods 4 with improved acoustics and design, and hearing-aid features awaiting U.S. regulatory approval.
Apple’s launch event comes as the company continues to face challenges in the Chinese market, where government restrictions and increased domestic competition have pressured iPhone sales. Apple Intelligence, introduced at the company’s developer conference in June, may be delayed in China as it awaits approval from Beijing. The company has yet to announce a Chinese AI partner, following OpenAI’s decision to block access to ChatGPT in the country earlier this year.
With the iPhone accounting for over half of Apple’s $383 billion in revenue last year, the company hopes its AI-driven advancements will attract a new wave of consumers.
