Apple has revealed its latest iPhone 16 series, along with new Apple Watches and AirPods. Although the Apple Intelligence features were a highlight, the much-anticipated artificial intelligence (AI) functionalities will not be available until October.
Apple unveiled its long-anticipated iPhone 16 series, featuring technology poised for “Apple Intelligence.” Alongside the handsets, the company also introduced new Apple Watches and AirPods. However, the AI functionalities promised with the new iPhones will not be included in the initial batch, which is expected in stores on 20 September. These AI tools are set to be tested in October with a software update. According to software chief Craig Federighi, the current AI features are just the beginning, with further capabilities to be rolled out in the coming months.
Apple’s share price dips during iPhone launch event
The debut of the new iPhone, traditionally held in September, is regarded as Apple’s most significant annual event and is expected to drive sales in the final quarter.
However, the AI-centred announcement failed to impress investors, as many of the new features were already introduced during the Worldwide Developers Conference (WWDC24) in May, when “Apple Intelligence” was first revealed.
During the event, Apple’s shares dipped by 1.5%, though they recovered losses by the close of trading on Monday. It’s worth noting that Apple’s iPhone launches often have minimal surprises for investors, given the details released earlier at WWDC.
Apple Intelligence at heart of the new iPhone 16 series
CEO Tim Cook revealed that the iPhone 16 was designed from the ground up for “Apple Intelligence”. The new handset features a customisable action button and a dedicated camera control button for instant access. It is powered by the A18 chip, specifically tailored to support generative AI capabilities.
For the premium models, the iPhone 16 Pro and iPhone 16 Pro Max, an advanced A18 Pro chip has been introduced. This allows for a 17% increase in total system memory bandwidth and offers greater efficiency than the standard A18 chip. The Pro models also boast larger display screens and thinner bezels compared to previous handsets. A titanium frame, nearly half the weight of stainless steel and more scratch-resistant, is available for these premium models.
The iPhone 16 series will be available for pre-order from this Friday, with official availability in stores on 20 September. The iPhone 16 and iPhone 16 Plus start at $799 and $899 respectively, while the iPhone 16 Pro starts at $999, and the iPhone 16 Pro Max is priced at $1,999.
Apple had previously introduced “Apple Intelligence”, featuring an AI-powered Siri, considered one of the most significant iPhone upgrades. Siri, driven by a Large Language Model (LLM) and integrated with OpenAI’s ChatGPT, now has enhanced capabilities, including contextual awareness and advanced app interaction. This upgrade is visually represented by a pulsating light on the side of the screen. However, these features will not be fully available until October, with further updates expected in the months following.
Concerns have emerged about whether the iPhone 16 series will significantly drive sales in the final quarter, given the late rollout of its AI functionalities. iPhone sales account for nearly half of Apple’s overall revenue, and “Apple Intelligence” is expected to play a critical role in the company’s future growth. Apple is scheduled to report its September quarter earnings at the end of October or early November, but the impact of new iPhone sales may not be reflected in these results.
New Apple Watch and AirPods introduce enhanced health features
The new Apple Watch Series 10 will feature advanced health capabilities, including the ability to detect sleep apnea, a condition affecting over one billion people globally, according to Apple. Alongside this, Apple unveiled the Apple Watch Ultra 2, which boasts improved functionality for sports enthusiasts, featuring “the most accurate GPS in a sports watch.”
Additionally, the AirPods Pro 2 have been marketed with “incredible health capabilities,” including a clinical-grade, over-the-counter hearing aid function. Apple announced that these health features are expected to receive FDA approval soon. The new AirPods 4 and AirPods Max, both powered by H2 chips, also come with a USB-C compatible charging case.
