Apple is expected to unveil the iPhone 16 on Monday, with subtle exterior upgrades but major internal changes that could reignite customer excitement after years of minimal innovation. This year’s iPhones are designed specifically for generative AI, allowing users to create text, images, and enjoy smarter interactions with Siri and other tools. Apple’s annual hardware event, starting at 1 p.m. ET, will showcase these advancements under the mysterious slogan, “it’s glow time.”
The tech giant is under pressure to prove these AI-driven features and other updates are compelling enough to prompt upgrades, especially as competitors have already embraced similar technologies. Since the iPhone 12’s launch in 2020 with 5G, there’s been little to convince users to invest in new models. Camera improvements have plateaued, and screen resolution advances are barely noticeable to the human eye. As a result, iPhone sales—half of Apple’s revenue—have slowed.
Investors, however, have shown renewed interest since Apple teased its AI ambitions. Apple stock has climbed 14% since June, suggesting faith in the potential of AI to drive new iPhone sales. Analysts estimate that around 300 million iPhones haven’t been upgraded in over four years, highlighting a significant opportunity for Apple if the iPhone 16 impresses.
Although Monday’s event will likely touch on updates to other products like AirPods and Apple TV+, the focus is squarely on the iPhone. The new AI capabilities promise more natural Siri conversations, smarter photo searches, and personalized responses based on user information. For instance, users may soon ask their iPhone for summaries of group chats or specific moments from a conversation, bringing AI into everyday communication.
The iPhone 16 will likely feature a more powerful processor to support these AI functions without draining battery life. Analysts also predict subtle design changes, such as a wider screen or updated edges, making the device stand out visually. A dedicated camera button is also rumored, enhancing the photography experience.
One key question is price. The iPhone’s base price has remained at $799 for four years, but with new AI features, analysts expect a modest price increase. However, Apple will likely avoid a steep hike to prevent deterring customers with sticker shock.
Beyond the iPhone, Apple may also reveal updates to the Apple Watch and AirPods. The Apple Watch Series 10 is expected to have a larger screen and slimmer design, while new AirPods will offer advanced gesture controls, allowing users to answer calls with a nod. These updates follow software improvements announced earlier this year, including health tracking features for Apple Watch.
As Apple seeks to regain its edge in the AI race, all eyes are on the iPhone 16 to see if it can spark a new wave of customer enthusiasm.