Apple released new software on Monday, starting in test mode next month, along with the much anticipated iPhone 16, which now has artificial intelligence built in. The company also promised enhancements to its Siri personal assistant.

“The next generation of iPhone has been designed for Apple Intelligence from the ground up. It marks the beginning of an exciting new era,” Chief Executive Tim Cook said at a product launch.

Apple’s stock ended the day hardly moved, closing at $220.91. Apple’s announcement was made just hours before Huawei (HWT.UL), a Chinese company, unveiled a tri-fold phone, highlighting the fierce competition the iPhone manufacturer confronts. Apple has not yet revealed which Chinese AI partner will power the 16s.

Phones are anticipated to be among the most significant battlegrounds in Apple’s and other companies’ global race to incorporate AI into products. In the midst of a decline in iPhone sales, the Cupertino, California-based corporation is also wagering that the AI capability will encourage customers to upgrade.

According to corporate officials, Apple Intelligence, the AI software, will be used to enhance Siri’s capabilities, including the ability to understand and identify objects taken using the phone’s camera.

Next month, the English language version of the United States will have access to a test version of Apple Intelligence. Other translated English versions will be able to access it starting in December. Next year, versions in Chinese, French, Japanese, and Spanish will also be available. According to Apple, features like enhancements for Siri will be released gradually. However, it did not specify when it would go beyond testing.

The iPhone 16 and 16 Plus, which employ an aluminum casing and a new chip, will cost the same as the versions they replace. One of the most praised hardware additions was an interchangeable button that controlled the camera in a layout resembling earlier generations.

The higher priced 16 Pro and 16 Pro Max models are composed of titanium and have additional AI features, like recommendations for optimizing photo shoot setup and audio editing tailored for high-end video production.

The newest Arm architecture, which has particular capabilities to expedite AI applications, is used in Apple’s new iPhone CPUs.

According to International Data Corp analyst Nabila Popal, “Upgrading will definitely entice existing iPhone users who have had their device for 3–4 years, even if some things are rolling out later, as this will future-proof their device for AI.”

However, a number of analysts stated that the feature delays originally kept a large number of prospective customers away.

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