Apple embraces AI craze with newly unleashed iPhone 16 lineup

The tech giant hopes to reverse a recent sales slump with AI

Apple CEO Tim Cook announced new products at Apple headquarters on Monday. (Juliana Yamada / AP Photo)

CUPERTINO, Calif. — Apple launched a new iPhone lineup Monday that is part of the artificial intelligence craze. This is the company’s latest attempt to capitalize on a technology trend and transform it into a cultural phenomenon.

The four different iPhone 16 models will all come equipped with special chips needed to power a suite of AI tools that Apple hopes will make its marquee product even more indispensable and reverse a recent sales slump.

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Apple’s AI features are designed to turn Siri, the company’s often-blundering virtual assistant, into a more innovative and versatile sidekick. They automate tedious tasks and perform crowd-pleasing tricks, such as creating customized emojis within seconds.

After receiving a standing ovation for Monday’s event, Apple CEO Tim Cook promised the AI package will unleash “innovations that will make a true difference in people’s lives.”

However, the breakthroughs will not begin as soon as the new iPhones — priced from $800 to $1,200 — hit stores Sept. 20.

Most of Apple’s AI functions will roll out as part of a free software update to iOS 18, the operating system that will power the iPhone 16 coming out in December. Apple said English will be the featured language at launch, but an update enabling other languages will emerge next year.

It’s all part of a new approach that Apple previewed at a developer’s conference three months ago to create more anticipation for the next generation of iPhones amid a rare sales slump for the well-known devices.

Since Apple’s June conference, competitors such as Samsung and Google have made greater strides in AI, a technology widely expected to trigger the most dramatic changes in computing since the first iPhone was released 17 years ago.

Just as Apple elevated fledgling smartphones into a must-have technology in 21st-century society, the Cupertino, California, company is betting it can do something similar with its tardy arrival to artificial intelligence.

To set itself apart from the early AI leaders, the technology baked into the iPhone 16 is promoted as “Apple Intelligence.” Despite the unique branding, Apple’s new approach mimics many of the features already available in the Samsung Galaxy S24, released in January and the Google Pixel 9, released last month.

“Apple could have waited another year for further development, but initial take up of AI-powered devices from the likes of Samsung has been encouraging, and Apple is keen to capitalize on this market,” said PP Foresight analyst Paolo Pescatore.

As it treads into new territory, Apple is trying to preserve its long-time commitment to privacy by tailoring its AI so that most of its technological tricks can be processed on the device instead of relying on giant computer banks in remote data centers. When a task needs to connect to a data center, Apple promises it will be done in a tightly controlled way that ensures that no personal data is stored remotely.

While corralling the personal information shared through Apple’s AI tools inherently reduces the chances that the data will be exploited or misused against a user’s wishes, it doesn’t guarantee iron-clad security. For instance, a device could still be stolen or hacked through digital trickery.

For users seeking to access even more AI tools than the iPhone offers, Apple is teaming up with OpenAI to give users the option of outsourcing more complicated tasks to the popular ChatGPT chatbot.

Although Apple is releasing a free version of its operating system to propel its on-device AI features, the chip needed to run the technology is only available on the iPhone 16 lineup and the high-end iPhone 15 models that came out a year ago.

That means most consumers interested in taking advantage of Apple’s approach to AI will have to buy one of the 16 iPhone models — a twist investors are counting on to fuel a surge in demand heading into the holiday season.

The anticipated sales boom is the main reason Apple’s stock price has climbed by more than 10% since the AI preview in June. But the company’s shares dipped slightly in Monday’s late afternoon trading after the iPhone showcase, continuing a recent downturn in tech stocks driven partly by concerns about how long it will take before the industry’s considerable investments in AI will pay off.

Besides its latest iPhones, Apple also introduced a new version of its smartwatch that will include a feature to help detect sleep apnea, as well as the next generation of its wireless headphones, the AirPods Pro, which will be able to function as a hearing aid with an upcoming software update.