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Apple's upcoming event on Monday is set to feature a revamped iPhone, boasting an enhancement in appearance.

Apple stirred enthusiasm among its audience with its presented concept of the "Apple Intelligence" AI artificial intelligence system" back in the year. Now, it's their turn to convincingly demonstrate its functionality in action.

On September 22, 2023, Apple's latest iPhone 15 models were put up for purchase at the Apple store...
On September 22, 2023, Apple's latest iPhone 15 models were put up for purchase at the Apple store located at The Grove in Los Angeles, California, during their debut.

Apple's upcoming event on Monday is set to feature a revamped iPhone, boasting an enhancement in appearance.

Apple is set to unveil their initial range of iPhones tailored for generative artificial intelligence (allowing users to create text and images) during their annual hardware event, which commences Monday at 1 p.m. ET. You can catch the livestream here.

The event is shrouded in mystery with the enigmatic slogan of “it’s glow time,” and Apple has remained tight-lipped about the meaning behind this.

Apple faces a significant challenge leading up to the event, needing to validate the novel AI features and other iPhone 16 improvements warrant a splurge for an upgrade. Apple must also assure investors they haven't fallen behind in the AI tech race, as competitors have already presented similar features with cutting-edge technology.

Ever since the debut of the iPhone 12 equipped with 5G connectivity in 2020, Apple hasn't offered users compelling reasons to buy the latest generation. Phone cameras have essentially reached a point where they cater to most individuals' daily needs without requiring major hardware alterations, and human vision isn't equipped to perceive higher screen resolutions past a certain point.

Consequentially, iPhone sales, accounting for half of the company's revenue, have been sluggish.

Apple's shares experienced a resurgence following the Apple Intelligence introduction, a signal that investors trust AI to rekindle iPhone sales. Apple's stock has surged 14% since the June 10 event and 18% since the year's beginning.

If Apple delivers on their promises, they stand to reap substantial gains – approximately 300 million iPhones worldwide have not been upgraded in over four years, according to a research note from analyst Dan Ives of investment firm Wedbush last month.

Thus, although Apple is likely to address enhancements made to various goods and services like AirPods or Apple TV+ on Monday, “everything is centred around the iPhone upgrade cycle. Everything else is a side plot,” commented D.A. Davidson analyst Gil Luria to CNN.

The centrepiece or supporting character, here’s what we anticipate from the Apple event.

The AI-Capable iPhone

Apple has dropped some hints regarding Apple Intelligence's capabilities: it will facilitate more natural conversations with Siri, aid in email composition, and make it simpler to identify specific instances within your photo albums. On Monday, Apple will need to exhibit how these features will materialize in real-life scenarios.

“Expect to discover instances of how, within your messaging thread, you'll receive summaries,” Luria suggested. “You'll discover why Tiffany M had a bone to pick with Tiffany R, and you'll be able to inquire about that within the chat and retrieve a response. Those are the types of features that will excite people ... to show some tangible examples of how folks will utilize Apple Intelligence to perform activities they couldn't do before.”

It’s not uncommon for new iPhones to incorporate an updated processor chip, but that adjustment may be particularly noteworthy this year to guarantee the iPhone 16 can accommodate the increased data processing requirements of the new AI features without draining the battery life.

Luria also speculated about a subtle shift in the iPhone’s appearance, such as a more extensive screen or updated edges, “to underscore the upgrade cycle.”

An individual procures an iPhone 15 on September 22, 2023, in Milan, Italy.

“Something exclusive about the new iPhones that will underscore to customers, ‘I have the new iPhone, and you don’t,’ which wasn't the case for the last four years,” he said.

The iPhone 16 is expected to encompass a dedicated camera key, as reported by Bloomberg’s Mark Gurman.

The burning question: cost?

A major concern preceding Monday’s event is how Apple will price the iPhone 16 lineup. For the past four years, the starting price at launch for the new iPhones was $799.

Apple enthusiasts have discussed the potential affordability of iPhone models for years, while investors prioritize maximum profits.

Many analysts, including CFRA Research’s Angelo Zino, predict that Apple could moderately elevate prices “across the board” for the iPhone lineup due to the new AI features and the cost of delivering them. However, a significant price hike is unlikely because “they don’t want to lose the (customer) enthusiasm due to sticker shock,” Luria said.

Other devices

Rumors suggest that Apple may also introduce updates to the Apple Watch and AirPods.

The Apple Watch Series 10 is expected to be slimmer than its predecessors but with a more extensive screen, and the company is set to roll out new budget-friendly and mid-range AirPods offerings, Gurman reported, citing unnamed sources.

These improvements would follow new software offerings for both devices that Apple announced at their annual developers conference in June.

AirPods users will be able to answer or decline a call simply by nodding or shaking their head. And new healthcare monitoring on the Apple Watch can alert users when they may be falling ill, based on indicators like body temperature and heart rate.

–Samantha Kelly and Ramishah Maruf contributed to this report.

Apple must demonstrate to investors that the AI features and other enhancements in the iPhone 16 are worth an upgrade, as competitors have already introduced similar technologies. The iPhone 16 is expected to have a dedicated camera key, potentially setting it apart from previous models and generating excitement among consumers.

Apple's proposed price increase for the iPhone 16 lineup is also a significant concern, as analysts balance the need for maximum profits with maintaining customer enthusiasm.

An individual clutches a sack containing the Freshly released iPhone 15 on September 22, 2023, marking Apple's unveiling of this model in Shanghai, China.

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