With sales declining, Apple has been under pressure to reveal strategies to spark a new surge in iPhone purchases. On Monday, the tech giant unveiled its latest model the iPhone 16 which features a camera button on the exterior of the device.
This external change hints at the internal upgrades Apple has made to leverage the latest advancements in artificial intelligence (AI). Tim Cook, Apple’s CEO, claimed these updates would “push the boundaries of what a smartphone can do,” though Apple faces stiff competition from other brands that have already integrated generative AI into their devices.
During Apple’s “Glowtime” event, where the iPhone 16 and other products were introduced, the company’s share price fell and ended the day flat. As a $3 trillion company, Apple is grappling with concerns about falling behind in the rapidly evolving AI sector.
iPhone sales, which constitute roughly half of Apple’s total revenue, have stagnated recently, dropping by 1% over the nine months ending June 29 compared to the previous year.
The new phones, featuring longer-lasting batteries, more powerful chips, and enhanced privacy features, are the company’s first designed specifically to accommodate AI and its new “Apple Intelligence” tools, many of which were announced in June.
These tools include new capabilities for creating and writing emojis, as well as integrating OpenAI’s ChatGPT into Siri to assist with queries and text generation.
In addition to the new iPhone, Apple also announced updates to its Apple Watch and AirPods. The updates will enable the devices to automatically lower volume during in-person conversations and to decline calls with a head shake.
The Pro version of AirPods will soon function as a “clinical grade” personal hearing aid for those with mild to moderate hearing loss, pending regulatory approval. This feature is expected to be available this fall in over 100 countries, including the US, Germany, and Japan.
The launch event, held in a polished setting, saw protests across the street where demonstrators, in a designated free speech zone, urged Apple executives to enhance efforts to protect children from harmful content on the App Store. The protest included a life-sized inflatable effigy resembling Tim Cook.
