Apple is relying on the device that made it a US$3.3 trillion company to land its first AI play.
What happened: Apple unveiled the new iPhone 16 yesterday, the first device to feature its new AI operating system, Apple Intelligence. The device will be available on Sept. 20, though the first Apple Intelligence software update isn’t expected until at least October.
- The Apple Intelligence tools include an improved Siri, AI-generated emojis, access to ChatGPT, and a new kind of search feature that incorporates the phone's camera.
Why it matters: Nearly 1.5 billion people are iPhone users, so any new features could shift how people around the world interact with their phones. AI-powered tools could one day learn your habits and predict your needs, making smartphones smarter than ever before.
Bottom line: Half of Apple’s revenue is linked to iPhone sales, but the company is struggling to maintain growth. Some analysts are skeptical that AI alone can convince buyers to upgrade their phones, but others are bullish that the device could reverse the slump.—LA