Apple ramps up AI effort with iPhone 16

September 10, 2024 (MLN): Apple Inc. introduced the latest version of its flagship device, the iPhone 16, betting it can entice consumers with modest hardware upgrades and AI technology that’s still on the horizon, Bloomberg reported.

Chief Executive Officer Tim Cook unveiled the smartphone — alongside new watches and AirPods earbuds — at an event Monday that was infused with the promise of artificial intelligence.

Apple is playing catch-up in the world of generative artificial intelligence, where tech peers like Alphabet Inc.’s Google and Microsoft Corp. have made strides.

Monday’s presentation was partly a pitch to consumers — and Wall Street — that Apple should be taken seriously in AI.

But the Cupertino, California-based company’s AI technology is still in early stages.

The Apple Intelligence tools have faced numerous delays, and many key features won’t arrive until next year.

For now, the technology is focused on summarizing messages and notifications, rather than matching the gee-whiz capabilities of rival systems.

Apple shares slipped more than 1.5% during the event, though they rebounded later. That kind of ho-hum reaction is fairly typical during Apple presentations.

Most new features are reported ahead of time, and there were few surprises during Monday’s presentation.

The iPhone 16 was built for AI “from the ground up,” he said, though the capabilities will only be gradually added to the device via software updates.

It’s a gambit for the tech titan, which has been racing to develop a suite of tools called Apple Intelligence.

Though Apple has been touting the technology since its developers conference in June, the software won’t be included in the initial versions of the new iPhones. They’re set to go on sale Friday, with the product reaching stores on September 20.

“This is just the beginning,” Apple software chief Craig Federighi said during the presentation. The first set of tools will be released as part of a beta test in October, he said, “with more features rolling out in the months to come.”

AI was a major theme of the event, which kicked off at 10 a.m. local time. The company hopes to use the Apple Intelligence software to entice consumers to buy upgraded devices, since customers will need a recent iPhone to handle the capabilities.

Apple Intelligence will include an upgraded Siri digital assistant and the ability to create custom emoji with text prompts. The event’s “It’s Glowtime” theme was a reference to the look of Siri’s new interface.

But much of the technology won’t be ready right away, potentially limiting its impact on iPhone sales.

Even when Apple Intelligence debuts in October, it will be a beta test — an early version for more adventurous consumers.

That “indicates a lot of the features are still being fine-tuned for release and not ready for prime time,” eMarketer analyst Gadjo Sevilla said in a note. “The focus on security and privacy is a likely reason for feature delays.”

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