With business slowing down, Apple has been feeling the pressure to demonstrate what it has in store to reignite iPhone sales. On Monday, the tech giant revealed its latest move—the iPhone 16, featuring a camera button on the outside of the device.
This external button hints at the internal changes Apple claims to have made to integrate the latest advancements in artificial intelligence (AI) into the new smartphone.
Apple’s CEO, Tim Cook, stated that the new upgrades would “push the boundaries of what a smartphone can do,” but acknowledged the stiff competition, as other brands have already integrated generative AI features into their devices.
During Apple’s “Glowtime” event, where the iPhone 16 and other products were unveiled, the company’s stock price dropped and ended the day flat. As a company valued at $3 trillion, concerns are rising that Apple may be losing its competitive edge in the burgeoning AI space.
iPhone sales, which constitute about half of Apple’s total revenue, have stalled in recent months, dropping by 1% over the nine months ending June 29 compared to the previous year.
Apple announced that its new phones come with longer battery life, more powerful chips, and enhanced privacy features, and are specifically designed to handle AI with its new “Apple Intelligence” tools, which were first introduced in June.
These tools include features for creating new emojis, writing assistance, and the integration of OpenAI’s ChatGPT into Siri to assist users with queries and text generation.
On Monday, Apple also introduced updates to its Apple Watch and AirPod headphones, including features that automatically lower the volume during in-person conversations and allow users to decline calls by shaking their head.
The Pro version of the AirPods will be able to serve as a “clinical-grade” hearing aid for individuals with mild to moderate hearing loss.
Apple is awaiting regulatory approval for this device, with the feature expected to be available this fall in more than 100 countries, including the US, Germany, and Japan.
Previously, Apple had a feature that allowed people to pair hearing aids with iPhones and other devices.
The event, marked by Apple’s signature polish, also saw protesters gathering across the street, calling on the company to increase efforts to protect children from harmful content on its App Store. A life-sized blow-up resembling Tim Cook was part of the protest.
Sales of the new iPhone 16 are set to begin in September, with prices starting at $799.
However, Apple Intelligence features won’t be available on the operating system until October, starting in the US and expanding to other countries in the following months, with the UK expected to receive them in December.
Ben Wood, chief analyst at CCS Insight, suggested that some might dismiss the new camera button as a “glorified shutter button.”
However, he pointed out that it offers significant upgrades, including AI-powered visual search, and believes Apple will win over customers.
“The combination of Apple Intelligence and new camera features on the iPhone 16 will help spur upgrades from loyal Apple customers,” Wood said.
“Particularly as Apple is positioning this latest update as being a future-proof purchase for customers eager to access Apple Intelligence features as they roll out over the next few years.”
Apple has been slower than competitors like Samsung and Google in introducing generative AI for features such as photo editing, translation, and web browsing.
Rivals are now incorporating these features into folding, flipping, and even tri-folding smartphones. Huawei’s new tri-fold phone, the Mate XT, reportedly reached over three million pre-orders on Monday.
Gartner analyst Annette Zimmermann stated it was “critical” for Apple to deliver on AI-ready smartphones, especially since they are entering the market later than their competitors.
She warned that launching these features prematurely could damage Apple’s reputation or lead to a decline in sales.
