Apple on Monday unveiled its artificial intelligence (AI)-boosted iPhone 16 and promised improvements in its Siri personal assistant as it rolled out new software, beginning in test mode next month.

Apple's event came hours before China's Huawei launches a tri-fold phone, underscoring the competitive challenge the iPhone maker faces. Apple has yet to announce an AI partner in China to power the 16s.

Market expectations

The new iPhone 16 and 16 Plus maintain the same pricing as their predecessors, featuring a new chip, aluminum cases and a customizable button for camera control. The premium 16 Pro and 16 Pro Max models are crafted from titanium, offering enhanced AI capabilities for improved photo and video production.

Apple also unveiled new Watches and AirPods with health-focused capabilities, as well as hardware-design improvements. Apple highlighted the Watch's ability to discover longer-term health conditions such as sleep apnea as well as detecting and responding to emergencies such as a fall.

Apple's latest chips incorporate Arm's advanced architecture, optimizing AI performance. Analysts suggest that long-time iPhone users may be motivated to upgrade for future AI readiness.

However, some potential buyers may hold off initially, waiting to see how new features perform. 

Meanwhile, Huawei has reportedly received over 3 million pre-orders for its innovative Z-shaped tri-fold phone, indicating strong consumer interest in AI features. The company is set to unveil its AI-enhanced Mate XT Z-fold phone on Tuesday in China.

Adding AI to products

Apple and technology companies around the world are racing to add AI to products, and phones are expected to be among the most important battlegrounds. The Cupertino, California-based company is betting the AI feature will drive consumers to upgrade amid a slowdown in iPhone sales.

Apple Intelligence, the company's AI software, will be used to improve Siri as well as enhancing features such as understanding and identifying objects captured by the phone camera, executives said.

A test version of Apple Intelligence will be available in the U.S. version of the English language next month. It will be available for other localized versions of English in December, with versions in languages including Chinese, French, Japanese and Spanish next year. Features including improvements to Siri will be rolled out over time, Apple said. It did not say, however, when it would move beyond test.

The iPhone 16 is the first Apple smartphone designed around these AI features, though those are expected to also be available on iPhone 15 Pro and Pro Max, the top-end versions of the previous-generation devices.

Competitors like Google are leveraging AI in their Pixel phones to challenge Apple, with features like live voice interactions with digital assistants. Google's AI advancements are being integrated into Android devices by manufacturers like Samsung and Motorola.

Apple has postponed the launch of some AI features in Europe due to regulatory concerns. 

(With input from Reuters, Xinhua)