Apple (AAPL.O), which opened a new tab on Monday, revealed the much anticipated iPhone 16 with enhanced AI and promised enhancements to its assistant, Siri, along with the release of new software, which will start in test mode next month.
“Apple intelligence was the driving force behind the design of the upcoming iPhone generation. Speaking during a product introduction, Chief Executive Tim Cook said, “It marks the beginning of an exciting new era.”
Apple’s stock ended the day hardly moved, closing at $220.91. Apple’s announcement was made just hours before Huawei (HWT.UL), a Chinese company, unveiled a tri-fold phone, highlighting the fierce competition the iPhone manufacturer confronts. Apple has not yet revealed which Chinese AI partner will power the 16s.

Phones are anticipated to be among the most significant battlegrounds in Apple’s and other companies’ global race to incorporate AI into goods. During a decline in iPhone sales, the Cupertino, California-based corporation is also wagering that the AI capability will encourage customers to upgrade.
According to corporate officials, Apple Intelligence, the AI software, will be used to enhance Siri’s capabilities, including the ability to recognise and interpret items taken using the phone’s camera.
Next month, the English language version of the United States will have access to a test version of Apple Intelligence. Other translated English versions will be able to access it starting in December. Next year, versions in Chinese, French, Japanese, and Spanish will also be available. According to Apple, features like enhancements for Siri will be released gradually. However, it did not specify when it would go beyond testing.
The iPhone 16 and 16 Plus, which employ an aluminium casing and a new chip, will cost the same as the devices they replace. One of the most praised hardware additions was an interchangeable button that controlled the camera in a layout resembling earlier generations.

The more expensive 16 Pro and 16 Pro Max models are composed of titanium and have additional AI features, like recommendations for optimising photo shoot setup and audio editing tailored for high-end video production.
The newest Arm architecture, which has particular capabilities to expedite AI applications, is used in Apple’s new iPhone CPUs.
According to International Data Corp analyst Nabila Popal, “Upgrading will entice existing iPhone users who have had their device for 3–4 years, even if some things are rolling out later, as this will future-proof their device for AI.”
However, several analysts stated that the feature delays originally kept a large number of prospective customers away.
“It’s possible that people will hold off on starting research until they see how these things pan out and how well they perform. However, I don’t think there will be the crazy rush like there was in previous years,” TECHnalysis Research founder Bob O’Donnell stated.
In contrast, Huawei’s website indicated on Monday that, prior to its official launch, it had received over 3 million pre-orders for its Z-shaped tri-fold phone. This strengthens Huawei’s position against Apple in China, where customers are clamouring for more AI features and are prepared to pay for them. It also highlights Huawei’s capacity to work around US sanctions.

AIRPODS AND WATCHES

Along with hardware design updates, Apple also revealed new Watches and AirPods with health-focused features. Apple emphasised the Watch’s capacity to identify chronic health issues like sleep apnoea and to identify and react to emergencies like falls.
Apple released hearing-aid features for AirPods that it has submitted for regulatory assessment in the United States.
Globally, Apple enthusiasts have eagerly anticipated the release of the new AI phones. Over half of Apple’s $383 billion in revenue last year came from iPhones.
D.A. Davidson analyst Gil Luria stated, “While Android phones may have some of these features, Apple has packaged them well and will be able to market them far more broadly.”
China presents Apple with unique difficulties.
“In Q2, Apple was no longer among the top five smartphone vendors in China,” according to Gadjo Sevilla, senior technology analyst at eMarketer. “For the first time, homegrown Chinese smartphone companies occupied all five positions. Apple Intelligence won’t probably be a major factor in the region’s adoption at first, as Beijing must yet authorise it before it can be implemented in China.”
Apple dramatically reduced pricing earlier this year in China as a result of local competition and government constraints.
Although the top-tier iPhone 15 Pro and Pro Max models from the previous generation are also anticipated to have similar AI technologies, the iPhone 16 lineup is the first Apple handsets built around them.
Competitors such as Alphabet (GOOGL.O) launch a new tab Google is attempting to challenge Apple’s hegemony in the high-end smartphone market by displaying AI technologies as well.
During its August Pixel smartphone release event, Google—the company behind the Android operating system that rivals Apple’s iOS—focused on AI technologies like Gemini Live, which lets users have live voice conversations with a digital assistant. Numerous AI features that Google had previously revealed were also made available for Android-based devices manufactured by OEMs including Motorola (MSI.N) and Samsung (005930.KS), which opens a new tab.
A week after its June developer conference, Apple announced that EU tech regulations would cause it to postpone the rollout of AI-powered features in Europe.
Tuesday in China is when Huawei plans to formally unveil the Mate XT Z-fold phone.