Apple is all set to reveal the iPhone 16 on Monday, September 9 at the big Apple event. While the new model might feature a few minor external updates, Apple is focusing on substantial internal enhancements to reignite interest among customers who have lacked compelling reasons to upgrade for some time.
At its annual hardware event, which begins at 1 p.m. ET, Apple is expected to introduce its first iPhone lineup designed specifically for generative artificial intelligence. This AI capability, which allows users to create text and images, will be a major highlight.
The event has been teased with the enigmatic slogan “it’s glow time,” but Apple has not yet clarified its meaning.
iPhone 16 and the new AI features
Apple is under significant pressure to demonstrate that the new AI features and other updates in the iPhone 16 are worth the investment. The company also needs to assure investors that it is keeping pace in the AI sector, especially since competitors have already launched similar technologies.
Since the release of the iPhone 12 with 5G connectivity in 2020, Apple has provided few incentives for customers to purchase the latest models. Advances in phone cameras and screen resolutions have reached levels sufficient for most everyday needs, leading to stagnation in iPhone sales. This slump has also impacted the company’s stock performance, which remained flat until the announcement of Apple Intelligence. Since then, Apple’s shares have risen by 14% since the June 10 event and nearly 18% since the start of the year.
What to expect from the Apple event?
The AI iPhone
Apple has hinted at some capabilities of its new AI, such as enabling more natural interactions with Siri, assisting in drafting emails, and enhancing photo album searches by incorporating personal information. The company will need to demonstrate how these features will function in real life.
Demonstrations might include features like summarizing text conversations and explaining interactions between contacts, which could generate excitement by showing practical applications of Apple Intelligence.
In addition to the AI features, a processor upgrade is expected to ensure the iPhone 16 can handle increased data processing demands without compromising battery life. There might be subtle design changes, such as a wider screen or updated edges, to emphasize the upgrade and differentiate the new model from previous ones.
According to Bloomberg, the iPhone 16 will also feature a dedicated camera button.
Question of price
A key consideration for the upcoming event is the pricing of the iPhone 16 lineup. The starting price for new iPhones has been $799 for the past four years. There has been ongoing debate among Apple enthusiasts about whether prices should be lowered, while investors generally favor higher profit margins.
Analysts speculate that Apple might slightly increase prices across the iPhone lineup due to the new AI features and associated costs. However, a significant price hike is unlikely, as it could dampen customer enthusiasm, according to Luria.
What else to expect?
There are also rumors about updates to the Apple Watch and AirPods. The Apple Watch Series 10 is expected to be slimmer with a larger screen, and new low-end and mid-tier AirPod models may be introduced, as reported by Gurman.
These updates would follow new software features announced at Apple’s developers conference in June. AirPods users will soon be able to answer or decline calls with a head gesture, and the Apple Watch will offer new vital sign tracking to alert users to potential illnesses based on indicators like body temperature and heart rate.
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