by Kenrick Cai

SAN FRANCISCO (Reuters) – Apple on Monday unveiled its new smartphone, the iPhone 16, a model with no major aesthetic changes but whose features are expected to benefit from the unprecedented contribution of artificial intelligence.

Its presentation, scheduled for 10:00 a.m. local time (17:00 GMT) at Apple Park in San Francisco, follows the developer conference in June, during which the group unveiled Apple Intelligence, its version of “generative” AI that can create text, images and other content on demand.

Apple also introduced an improved version of its Siri voice assistant, which integrates ChatGPT, the chatbot developed by OpenAI, a company partly owned by Microsoft.

The iPhone 16 unveiling comes amid fierce competition between Apple and Huawei in China, where consumers are willing to pay for much-needed AI features. Huawei is also planning to unveil its own product just hours after Apple’s presentation.

Apple Intelligence is still waiting for approval from Beijing to be able to market in the Chinese market. In July, OpenAI blocked access to ChatGPT in China, a decision that could affect the chatbot’s integration with Siri.

“The Chinese market is more hungry for AI features than the U.S. market,” said Ben Bajarin, managing director and chief analyst at Creative Strategies. “It’s going to be very difficult to introduce it in China right away, so they (Apple) will rely on the merits of the hardware.”

Last year, iPhones accounted for more than half of Apple’s $383 billion in revenue.

The iPhone 16 is part of a notable evolution for the Californian company, which hopes to see the artificial intelligence function attract consumers and improve sales.

Government restrictions and increased competition in the Chinese market prompted Apple to make aggressive price cuts earlier this year.

The iPhone 16 will be Apple’s first smartphones designed around AI features, but innovation lovers will have to wait.

The group announced the release of Apple Intelligence in the United States this fall, but postponed its launch in Europe due to EU regulations.

“The software side, and how Apple frames it, is the bigger question,” Bajarin said.

Apple’s rivals, such as Alphabet’s Google, are also offering AI features. Google, which develops the Android operating system, had brought forward the release of its Pixel smartphone to August to compete with Apple.

“The question is who will be the first to deliver a personal intelligent assistant with precise, personalized knowledge and insights,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

(Reporting by Kenrick Cai in San Francisco; by Dagmarah Mackos; editing by Sophie Louet)

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