The Apple Glowtime event is tripling down on Apple Intelligence

Apple’s biggest fear is that its advanced iPhone has become too short-sighted. For the most part, it has remained largely the same over the previous seven years, with incremental upgrades to its camera, CPU and battery life.

However, Apple tried to break free from this forecast by releasing the first iPhone models on Monday Designed for artificial intelligence From the “ground up,” a phrase CEO Tim Cook used in his opening remarks.

In line with previous virtual product launches that emerged in the Covid era, the company hosted a pre-recorded video from its Silicon Valley headquarters to unveil the iPhone 16, available in four variants optimized for Apple Intelligence, the company’s generative AI-powered system. According to Apple, the phones will have advanced capabilities like sorting messages, writing recommendations and an upgraded Siri, making it a more powerful virtual assistant.

The firm also unveiled the Apple Watch Series 10, which features a larger, brighter display that’s about 10% thinner than its Series 9 predecessor. Apple also unveiled a new model, the AirPods Pro, which can act as a professional-grade hearing aid — Apple’s first foray into that area — and automatically reduce noise at concerts or nearby construction sites.

Betting on AI to boost sluggish iPhone sales

New phone releases are crucial for Apple, as sales have slowed since 2021. The last time the company saw meaningful year-over-year growth in iPhone unit sales was largely due to the introduction of 5G.

Apple has struggled recently as iPhone owners hold on to their phones for longer. By restructuring its engineering teams to focus on artificial intelligence, it is making a significant bet that 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 products, these features are still not widely used. However, as demonstrated by digital music players, smartphones and smartwatches, Apple has shown in the past that it is willing to wait to adopt and promote developing technologies.

General AI is the Kool-Aid factor

While AI is the current buzz with many consumers, the jury is still out on whether most mainstream users will drink the Apple Intelligence Kool-Aid and upgrade their current iPhones.

Google, Microsoft and OpenAI have shown impressive demos for months. Still, it remains unclear whether AI’s benefits will inspire users to upgrade their iPhones or remain a “bright, shiny object” by skeptical consumers.

In that vein, when one compares the Apple Intelligence that the company advertised when it unveiled the technology in June, the iPhone 16 has fewer features at launch.

Starting next month, users will be able to find photos faster by describing an image to Siri, receive brief notifications and receive writing tips from their phone. In addition, thanks to artificial intelligence, the camera can recognize certain types of plants, flowers or breeds of dogs.

Will consumers trade privacy for AI convenience?

Of course, all of these benefits require mainstream users to allow access to unprecedented levels of personal information on their smartphones, and it’s not yet clear whether they’re ready to sacrifice this privacy in exchange for fully enjoying the benefits that AI has to offer.

Other features will be added gradually. For example, Siri can handle phone requests containing personal information, such as extracting flight information from a family member’s text message and contacting the airline for real-time arrival details.

Accessible on iPhones, requests not involving personal data will be sent to ChatGPT 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 features a conversational virtual assistant, the ability for users to edit photos and ask complex questions using the company’s generative AI chatbot, Gemini.

Google has also seen AI mistakes, such as a chatbot that produces hilarious (and sometimes disturbing) results.

The 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, a faster processor, and a physical “action” button that users can set 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, a larger battery and the ability to record audio in studio quality. This latter feature will undoubtedly strengthen the iPhone Pro brand as the go-to device for users with computational video and photography applications.

Pro line phones have the same processor that powers Apple Intelligence. The A18 chip is used in the standard iPhone 16, while the A18 Pro processor is in the iPhone 16 Pro. Compared to previous years, the upgrade results in a less noticeable difference between the capabilities of higher-priced and lower-priced phones.

Apple’s international challenge

Apple faces additional challenges as the world enters the generative AI era. For most of the iPhone’s 17-year run, the company built a single software system that it updated globally. However, more countries need to keep data and computer systems based on artificial intelligence within their borders.

It is logical to assume that AI systems will, over time, eventually recognize the linguistic and cultural variations of users. As a result of this development, Apple may have to develop more specialized software for the countries where the iPhone is sold.

This implication represents an undertaking of enormous software complexity, for which the organization may need to prepare itself from a resource perspective.

During the launch event, Apple mentioned that an initial software upgrade for Apple Intelligence will be available in the US starting next month. Later this year, Apple plans to expand the rollout of Apple Intelligence to English-speaking countries in Europe, the Pacific Rim and South Africa, leaving most countries without Apple Intelligence until next year.

Apple is the untested future of intelligence

Apple Intelligence offers significant improvements in user experience through innovative AI-powered features, personalized interfaces and enhanced privacy, but its impact on iPhone sales remains a short-lived question.

These innovations could provide a compelling reason to upgrade for tech enthusiasts and users deeply invested in the Apple ecosystem. However, for more price-sensitive or casual consumers, the incremental nature of these enhancements – especially in a saturated smartphone market – may not be enough to drive massive sales growth.

Ultimately, Apple’s ability to maintain strong iPhone sales will depend on its lure of cutting-edge AI features and broader market factors such as pricing strategies, economic conditions and competition from rivals such as Samsung and Google.

The jury is still out on whether consumers will take the gen-AI bait — though Apple’s famous messaging and brand strength may give it a reasonable shot.