The Apple event today is set to introduce the highly anticipated iPhone 16.
The organization is preparing to debut the inaugural selection of iPhones designed specifically for generative artificial intelligence (capable of creating text and visuals) at their annual hardware gathering, which commences at 1 p.m. ET.
The event has been foreshadowed with the cryptic slogan of “it’s glow time,” and Apple has remained silent about the meaning behind this phrase.
Apple encounters significant pressure prior to the event to demonstrate the efficacy of the new AI capabilities and iPhone 16 innovations, warranting users to upgrade. Moreover, Apple must reassure investors that it hasn't lagged in the AI race, as competitors have already introduced analogous features with the latest technology.
Following the launch of the iPhone 12 with 5G connectivity in 2020, the company has provided customers few reasons to purchase the latest generation. Smartphone cameras have essentially progressed to a sufficient level for the majority of people's daily requirements, without the need for significant hardware enhancements, and eventually, the human eye reaches its limitation of perceiving higher screen resolutions.
Consequently, iPhone sales, which constitute half of the company's revenue, have been sluggish.
Apple's shares witnessed a state of stagnation, until the presentation of Apple Intelligence, suggesting that investors have faith in AI to encourage users to purchase new iPhones. Apple's stock has increased by 14% since the June 10 event, and nearly 18% since the beginning of this year.
If Apple delivers, it could profit – approximately 300 million iPhones worldwide have not been upgraded in more than four years, according to an analyst report from Wedbush last month.
Thus, while Apple will presumably highlight adjustments to various products and services like AirPods or Apple TV+ on Monday, “everything is about the iPhone upgrade cycle. Everything else is a subplot,” D.A. Davidson analyst Gil Luria told CNN.
Subplot or central character, here's what we can anticipate from the Apple event.
The AI iPhone
The company has hinted at some of the things Apple Intelligence will be capable of: it will facilitate more natural conversations with Siri, assist in composing emails, simplify the process of locating specific moments in your photo albums, and incorporate users’ personal information into its responses. The company's task on Monday will be to exhibit iPhone users what that will look like in real life.
“Expect to see demonstrations about how, within your text string, you can obtain summaries,” Luria said. “You’ll know why did Tiffany M hold a grudge against Tiffany R, and you’ll be able to ask that within the chat and receive a response. Those are the kinds of things that will incite enthusiasm ... to exhibit some tangible examples of how individuals will be able to use Apple Intelligence to do things they weren’t previously able to do.”
And while it's not unusual for new iPhones to receive an upgraded processor chip, this change may be particularly significant this year to ensure that the iPhone 16 can manage the enhanced data processing needs that will come with the new AI features without sacrificing battery life.
Luria added that he thinks there may be a subtle alteration to the iPhone's appearance, such as a broader screen or upgraded edges, “to emphasize the upgrade cycle.”
“Something distinctive about the new iPhones that will communicate to consumers that, ‘I possess the new iPhone and you don’t,’ which was not the case for the previous four years,” he said.
The iPhone 16 is also expected to feature a dedicated camera button, according to a report from Bloomberg's Mark Gurman.
The big question: price?
A significant concern ahead of Monday's event is how Apple will set the price for the iPhone 16 lineup. For the past four years, the starting price at launch for the new iPhones was $799.
Apple enthusiasts have debated for years whether iPhone models should be less expensive, while investors prefer maximum revenue.
Many analysts, including CFRA Research’s Angelo Zino, suggest that Apple could modestly raise prices “across the board” for the iPhone lineup due to the new AI features and the associated expense of delivering them.
However, a significant increase probably isn't likely because “they don’t wish to diminish the enthusiasm due to sticker shock,” Luria said.
Other devices
There are rumors that Apple may also unveil upgrades to the Apple Watch and AirPods.
The Apple Watch Series 10 is anticipated to be thinner than its predecessors but with a larger screen, and the company is also set to introduce new low- and mid-tier AirPod offerings, according to Gurman's report, citing unnamed sources.
These updates would follow new software offerings for both devices that Apple announced at its annual developers conference in June.
AirPods users will be able to answer or decline a call with just a nod or shake of their head. And new vital sign monitoring on Apple Watch can notify users when they may be experiencing symptoms of illness, based on signals like body temperature and heart rate.
–Samantha Kelly and Ramishah Maruf contributed to this report.
The tech industry is abuzz with anticipation as Apple, known for leading in business innovation, is set to showcase the potential of their new AI-capable iPhones in the tech business sector. With the increasing importance of artificial intelligence in various industries, Apple must ensure that the iPhone 16 and its AI capabilities are compelling enough for users to upgrade and investors to remain confident in the company's ability to stay ahead in the AI race.
