Apple Bets on AI to Revive iPhone Sales with Launch of iPhone 16
Faced with declining sales and increasing competition, Apple is under pressure to reignite consumer interest in its flagship product. On Monday, the tech giant introduced the iPhone 16, showcasing a new design feature—a physical camera button on the exterior of the handset.
While the button is the most noticeable change, Apple says the real innovation lies within, thanks to significant upgrades in artificial intelligence (AI) technology. CEO Tim Cook emphasized that the improvements will “push the boundaries of what smartphones can achieve.” However, the company is entering a fiercely competitive market, where rivals like Samsung and Google have already incorporated AI into their devices.
Apple’s unveiling came during its “Glowtime” event, but the company’s stock saw little change, ending the day flat. With a market value of $3 trillion, Apple faces growing skepticism about its position in the rapidly expanding AI sector. iPhone sales, which account for nearly half of the company’s total revenue, have stalled recently, dropping by 1% year-over-year for the nine months leading up to June 29.
The new iPhone 16 is designed to support Apple’s latest AI initiatives, including longer-lasting batteries, more powerful processors, and enhanced privacy protections. Apple also introduced “Apple Intelligence,” an AI system designed for tasks like generating emojis and integrating OpenAI’s ChatGPT into Siri for advanced text and query responses.
In addition to the iPhone 16, Apple also announced updates to other products. New features for the Apple Watch and AirPods Pro include automatic volume adjustment when a user engages in face-to-face conversations and a head-shake gesture to decline calls. AirPods Pro will also soon offer clinical-grade hearing aid capabilities for users with mild to moderate hearing loss, pending regulatory approval.
Protestors, advocating for greater protections for children from harmful content on the App Store, gathered near the event, where a life-sized inflatable caricature of Tim Cook was displayed.
Apple has set the price of the iPhone 16 at $799, with sales beginning in September. However, its AI-powered features will not be available until October in the U.S., with other countries like the UK gaining access later in December.
Despite criticism that the new camera button is merely a “fancy shutter,” industry analysts like Ben Wood from CCS Insight believe Apple’s AI-driven features will win over loyal customers. He praised the new visual search capabilities powered by AI, describing them as “significant” and likely to drive upgrades among Apple users. Wood also noted that Apple is positioning this new release as a “future-proof” purchase for consumers eager to take advantage of Apple’s evolving AI tools in the coming years.
However, Apple’s late entry into the AI race hasn’t gone unnoticed. Competitors like Samsung and Google have already embedded AI for features like photo editing and language translation, with some devices offering foldable screens. Chinese brand Huawei recently received over three million pre-orders for its tri-fold smartphone, the Mate XT.
Gartner analyst Annette Zimmermann warned that Apple’s delayed AI rollout places immense pressure on the company to deliver a flawless product. Any hiccup could tarnish Apple’s reputation and impact sales.