Apple AI expected to star as new iPhones are unveiled

Apple is expected to release its latest line of iPhones on Monday that will feature generative AI capabilities as the tech behemoth looks to bolster sales of its iconic device.

The company founded by Steve Jobs has disclosed little about what it plans to show off during a launch event, titled "Glowtime," at its headquarters in the Silicon Valley city of Cupertino.

It is the time of year, though, when Apple typically updates its iPhone lineup.

Apple has a lot riding on what would be the iPhone 16 and will hope that customers will be enticed to buy the latest models, attracted by new AI powers.

With $39 billion in sales last quarter, the iPhone counts for roughly 60 percent of Apple’s revenue, and remains the main entryway to the company’s services, such as the App Store or Apple TV, which are becoming a growing part of its business.

Apple is only just coming out of a long sales slump as users increasingly stick with older models longer.

"The iPhone 16 will be one of the most significant iPhone introductions, not because of what's on the outside but because of what's inside -- namely, Apple Intelligence," said Forrester principal analyst Dipanjan Chatterjee.

"Apple Intelligence" is a new suite of software features for all devices that was announced in June at the company's annual developers conference, where it also announced a partnership with ChatGPT-maker OpenAI.

In the short-term, these include AI-infused image editing, translation, and small, creative touches in messaging, but not more ambitious breakthroughs promised by other AI players, such as OpenAI or Google.

- 'Super-powered Siri' -

Apple also said its digital assistant Siri will get an AI upgrade and now will appear as a pulsating light on the edge of a home screen.

"Siri will be a big part of the conversation," Creative Strategies analyst Carolina Milanesi said of Monday’s event.

Launched more than 12 years ago, Siri has come to be seen as a dated feature, overtaken by a new generation of assistants such as GPT-4o, OpenAI's latest offering.

Apple watchers predict Apple will introduce iPhone 16 models with custom chips that can power these AI features, including the Siri upgrade.

By adding AI capabilities, Apple is looking to "shake that expectation" that iPhone launches are  "just steady improvements in hardware and software,"  said Techsponential analyst Avi Greengart.

Longer term, Apple could dramatically change the iPhone experience with a "super-powered Siri" working across all the apps, Greengart said.

- Pixel power -

Apple's announcement closely follows Google, which last month unveiled AI-infused Pixel 9 smartphones, its challenge to the iPhone.

Pixels account for a tiny sliver of the global smartphone market dominated by Samsung and Apple, but Google argued its new line is a chance to answer what -- after all the hype -- AI can actually do for customers.

"There have been so many promises, so many 'coming soons,' and not enough real world helpfulness when it comes to AI - which is why today we're getting real," Google senior vice president of devices Rick Osterloh said at the company's campus in Mountain View, California.

Samsung has also showcased AI across a range of its consumer electronic products as it looks to extend its leadership in global smartphone sales.