Apple debuts iPhone 16 with test AI software rolling out this year and next

Apple on Monday unveiled its long-awaited, artificial intelligence-boosted iPhone 16 and promised improvements in its Siri personal assistant as it rolled out new software, beginning in test mode next month.

"The next generation of iPhone has been designed for Apple Intelligence from the ground up. It marks the beginning of an exciting new era," Chief Executive Tim Cook said at a product launch.

Shares of Apple closed barely changed for the day at US$220.91. Apple's event came hours before China's Huawei launches a tri-fold phone, underscoring the competitive challenge the iPhone maker faces. Apple has yet to announce an AI partner in China to power the 16s.

Apple and technology companies around the world are racing to add AI to products, and phones are expected to be among the most important battlegrounds. The Cupertino, California-based company also is betting the AI feature will drive consumers to upgrade amid a slowdown in iPhone sales.

Apple Intelligence, the company's AI software, will be used to improve Siri as well as enhancing features such as understanding and identifying objects captured by the phone camera, executives said.

A test version of Apple Intelligence will be available in the US version of the English language next month. It will be available for other localized versions of English in December, with versions in languages including Chinese, French, Japanese and Spanish next year. Features including improvements to Siri will be rolled out over time, Apple said. It did not say, however, when it would move beyond test.

The iPhone 16 and 16 Plus will cost the same as models they replace and use a new chip and an aluminum case. A customizable button that can control the camera was one of the most touted hardware features in a format that looks similar to previous models.

The higher-end 16 Pro and 16 Pro Max are made from titanium and have more AI capability, such as offering suggestions on how to set up a photo shoot more effectively and audio-editing capabilities aimed at professional-level video production.

Apple's new iPhone chips use the latest version of Arm's architecture that includes specific features to speed AI applications.

"Existing iPhone users who have had their device for 3-4 years will definitely be enticed to upgrade, even if some things are rolling out later, as this will future-proof their device for AI," said International Data Corp analyst Nabila Popal.

Still, several analysts described the delays in features as keeping many potential buyers on the sidelines initially.

By comparison, Huawei's website showed on Monday that it had garnered more than 3 million pre-orders for its Z-shaped tri-fold phone ahead of its official unveiling.

Watches and AirPods

Apple also unveiled new Watches and AirPods with health-focused capabilities, as well as hardware-design improvements. Apple highlighted the Watch's ability to discover longer-term health conditions such as sleep apnea as well as detecting and responding to emergencies such as a fall.

As it updated AirPods, Apple rolled out hearing-aid features that it has submitted for US regulatory review.

Apple fans globally have been waiting to see the new phones with AI. IPhones accounted for more than half of Apple's US$383 billion sales last year.

China offers particular challenges to Apple.

"Apple fell out of the list of top five smartphone vendors in China in Q2," said eMarketer senior technology analyst Gadjo Sevilla. "It was the first time that China's domestic smartphone firms held all five spots."