On Monday, Apple introduced its highly anticipated iPhone 16, which is enhanced with artificial intelligence (AI) capabilities. Alongside the phone, Apple also announced upgrades to Siri and revealed new watches and AirPods. The company’s new AI feature, branded Apple Intelligence, will debut in test mode next month, marking a major shift in Apple’s tech strategy.

According to CEO Tim Cook, the iPhone 16 represents the dawn of a new era for Apple, built specifically for AI integration. However, despite the exciting announcements, Apple shares remained largely unchanged. This unveiling occurred just hours before China’s Huawei launched its own tri-fold smartphone, highlighting the fierce competition Apple faces in the global market. Notably, Apple has yet to announce an AI partner in China, a crucial market for the iPhone 16.

As AI integration becomes a key battleground for tech companies, Apple is betting big that its AI-enhanced iPhones will drive upgrades, especially in a market facing declining iPhone sales. The new Apple Intelligence software aims to significantly improve Siri’s capabilities and enhance features like object recognition via the camera.

The test version of Apple Intelligence will be available next month in US English, with other English versions rolling out in December. By 2024, Apple Intelligence will expand to other languages, including Chinese, French, Japanese, and Spanish. However, Apple did not specify when these features would move beyond the testing phase.

The iPhone 16 and iPhone 16 Plus will feature new chips and an aluminium case, keeping their prices the same as previous models. Among the new hardware features is a customisable button that allows easier control of the camera. Meanwhile, the iPhone 16 Pro and Pro Max models will be crafted from titanium and boast greater AI capabilities, offering users intelligent suggestions for optimising photo shoots and audio editing, aimed at professional content creators.

Apple’s new iPhone chips utilise the latest version of Arm’s architecture, designed to accelerate AI applications. According to Nabila Popal, an analyst from International Data Corp, users with iPhones that are three to four years old will likely be tempted to upgrade to the iPhone 16. Despite some delayed feature rollouts, upgrading to the latest model will help future-proof devices for AI technology.

However, some analysts, such as Bob O’Donnell from TECHnalysis Research, noted that the delays might cause potential buyers to hold off on immediate purchases. By contrast, Huawei has already attracted over 3 million pre-orders for its Z-shaped tri-fold phone, reflecting its ability to weather U.S. sanctions and dominate the Chinese market with new AI-driven features.