Apple set to unveil iPhone 16 with AI features

APPLE is expected to unveil its iPhone 16 on Monday, focusing on artificial intelligence (AI) features in the flagship device. The event, which will take place at Apple Park headquarters, comes as competition heats up in the global smartphone market.

Hours after Apple's presentation, China's Huawei will announce its Mate XT, a triple-folding smartphone.

Huawei’s Mate XT has already garnered over 3 million pre-orders, according to the company’s website. The release of the Z-shaped tri-fold phone highlights Huawei's ability to compete in the AI space despite facing US sanctions. Analysts note that the Chinese market is particularly eager for AI features in smartphones.

Apple’s AI technology, known as Apple Intelligence, is a central feature of the new iPhone 16. "The Chinese market is hungrier for AI features than the US market," said Ben Bajarin, CEO of Creative Strategies. However, Apple faces challenges in bringing its AI offerings to China immediately due to regulatory hurdles.

Apple shares dropped 1.25 per cent in morning trading ahead of the event.

Apple introduced Apple Intelligence at its developer conference in June, emphasising features like text generation, image creation, and other capabilities. However, these upgrades may take time to roll out to users, with media reports suggesting a full Siri update won’t arrive until early next year. The new AI tools will be included in an upcoming software update for iPhones and iPads, expected in October.

In China, the release of Apple Intelligence will need approval from Beijing. Meanwhile, Apple's iPhone sales, which accounted for more than half of its $383 billion in revenue last year, have been under pressure from domestic competitors. Earlier this year, Apple cut prices in China due to local competition and government restrictions.

While Apple plans to launch AI features across its iPhone lineup, the iPhone 16 will be the first device specifically designed around these capabilities. The AI features will also be available on the iPhone 15 Pro and Pro Max models. Alongside the new phones, Apple is expected to introduce updates to the Apple Watch and AirPods.

Google, which also competes in the high-end smartphone market with its Android-based devices, unveiled its AI-powered Pixel 9 smartphone in August. Google has highlighted features like Gemini Live, which allows voice interactions with a digital assistant. Other AI functions have been incorporated into Android devices made by companies like Samsung and Motorola.

"The question is who will be the first to combine a truly personal AI assistant with accurate, personalised knowledge," said Bob O'Donnell, chief analyst at TECHnalysis Research.

Apple has so far only announced a US release timeline for Apple Intelligence. In June, the company delayed its European release due to regulatory issues. Analysts are watching closely to see if Apple’s AI features will be compelling enough to drive a larger-than-usual upgrade cycle for the iPhone.

(With inputs from agencies)