“We’re thrilled to introduce the first iPhones designed from the ground up with Apple Intelligence and its breakthrough capabilities,” Apple CEO Tim Cook said at an event at the iPhone maker’s Silicon Valley headquarters.
With $39 billion in sales last quarter, the iPhone accounts for about 60 percent of Apple’s revenue and remains the main gateway to the company’s services, such as the App Store or Apple TV, which are becoming a growing part of its business.
Apple is only just emerging from a long sales slump as users increasingly prefer older models for longer.
“This iPhone 16 launch is all about Apple’s smarts and launching the consumer AI revolution through Cupertino,” Wedbust analyst Dan Ives said in a note to investors, referring to Apple’s hometown.
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“In essence, Cupertino will be the gatekeeper of the consumer AI revolution.” “Apple Intelligence” is a new set of software features for all devices that was announced in June at the company’s annual developers conference, where it also announced a partnership with OpenAI, maker of ChatGPT.
“For years, artificial intelligence and machine learning have been essential to delivering many of the features and experiences you love,” Cook said.
“In June we launched Apple Intelligence, our powerful new personal intelligence system, which will have an incredible impact.”
In the short term, these include AI-powered image editing, translation and small creative touches in messaging, but not more ambitious advances promised by other AI players such as OpenAI or Google.
Ives expects software makers to begin producing applications and services optimized with generative AI capabilitiesboosting iPhone sales.
Apple is expected to adapt new AirPods headphones and smartwatches to take advantage of artificial intelligence capabilities and the Siri digital assistant.
The company announced new Apple Watch and AirPods models at the event.
By adding AI capabilities, Apple is looking to “break that expectation” that iPhone launches are “just constant improvements in hardware and software,” said Techsponential analyst Avi Greengart.
In the long term, Apple could dramatically change the iPhone experience with a “super-powerful Siri” that works across all apps, Greengart said.
– Pixel Power –
Apple’s announcement follows closely on the heels of Google’s unveiling of the artificial intelligence-powered Pixel 9 smartphones last month, its challenger to the iPhone.
The Pixels represent a small slice of the global smartphone market dominated by Samsung and Apple, but Google has argued that its new line is a chance to answer what, after all the hype, AI can really do for customers.
“There’s been so much promise, so much ‘coming soon’ and not enough real-world utility when it comes to AI, so today we’re going to get real,” Google’s senior vice president of devices Rick Osterloh said at the Pixel 9 launch.
Samsung has also showcased AI in a range of its consumer electronics products as it looks to extend its lead in global smartphone sales.
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