During Apple’s recent annual iPhone event, where the company announced its new iPhone 16 series, it also unveiled a slew of new wearables and a new silicon strategy. To no one’s surprise, AI was a big component of the launch; there was also a heavy focus on the A18 silicon in the iPhone 16 and 16 Pro—the first time in a while that Apple has delivered near-parity with the silicon inside the base-model iPhone and the Pro model. Apple also announced new AirPods, a new Apple Watch and some software improvements to add functionality to the existing AirPods Pro 2.
The New iPhone 16
As usual, Apple has touted the iPhone 16 as the best iPhone it has ever made. This launch does represent a shift in Apple’s approach, given that the new base model iPhones come with Apple’s new A18 silicon. You would think that this is normal, but the company has for a long time reserved newer chip updates for the Pro series and staggered chip availability. That hasn’t fully gone away, but for example last year’s iPhone 15 had an A16 Bionic processor, while the 15 Pro used the A17 Pro Bionic processor. Apple leapfrogged the A17 chip entirely for the iPhone 16, moving onto the A18 for the base-model phone and the A18 Pro chip in the iPhone 16 Pro. So, I expect that there will be some kind of gap in specs between the two chips, but it will likely be the smallest in Apple’s recent history.
One noteworthy improvement this year is that Apple has decided to orient the cameras such that even the base-model iPhone can capture spatial video and photos, which was previously a feature reserved for the Pro models. Apple also decided that it would bring parity to the cameras in the iPhone 16 Pro and the Pro Max, making them exactly the same for the first time in a long time. In the last generation, users had to buy the Pro Max to get access to the 5x telephoto, but this year it’s available in both models. This has led many users, including myself, to downsize to the smaller iPhone 16 Pro. Yes, there is a hit in terms of both screen size and battery life, but the iPhone 16 Pro’s battery life is already quite good, and a few hours won’t make a huge difference.
What has already made a difference is that the iPhone 16 Pro is much easier and more comfortable to hold, and for people like my new-adopter wife, it’s a much easier transition from a normal iPhone. When using a case or accessory like the Clicks Keyboard I reviewed earlier this year, the iPhone 16 Pro Max is just unwieldy, and while the 6.9-inch screen may be enticing for some, it is bordering on a tablet in size.
The Race For AI Dominance
The biggest problem with the new iPhone 16 series isn’t the hardware design or specs, even though the design has arguably remained mostly the same since the iPhone 11 Pro. The main problem is that Apple is pitching its Apple Intelligence capabilities for AI several months before they are actually available. In fact, at launch, many of Apple’s stores were designed to show off the new version of Siri for the iPhone 16, which won’t be available until spring of 2025, nearly six months after launch.
The new Siri is one of the cornerstones of Apple’s AI strategy and is designed to be an agent of sorts to take advantage of all the new Apple Intelligence capabilities. Given the lag between the iPhone 16 launch and the availability of the AI-enabled Siri, some people have been concerned that iPhone sales may struggle (beyond the typical early-adopter upgrade cycle and after the holidays are over) because Apple still hasn’t truly launched its full AI capabilities. I believe that Apple has allowed its marketing hype to rush ahead of its product delivery—even though Apple’s AI product is far from finished—because it feels the pressure from the rest of an industry that’s racing to adopt and integrate AI.
Apple Watch Goes Big
The new Apple Watch Series 10 introduces a mostly iterative approach to the Apple Watch, with the biggest improvements coming in screen size and display quality. Previously, if you wanted a big Apple Watch, you had to get the Apple Watch Ultra, which came with a significantly larger battery and even more premium materials—and a price tag to match. With the new Series 10, by contrast, you can enjoy a bigger and brighter screen with a better viewing angle without needing to spend $800 or more.
While Apple did introduce a new color (black titanium) for the Apple Watch Ultra 2, it didn’t really do much else outside of the size and display improvements for the Series 10. Apple did make the Series 10 thinner, which is welcome but not necessarily as important as oxygen sensing, which Apple Watches still lack due to the Masimo pulse oximeter lawsuit.
More AirPods, Cosmetic Updates And Improvements For Hard-Of-Hearing Users
At the launch event, Apple also announced a series of new AirPods, including the AirPods 4, which come in two flavors—with or without noise canceling, which makes for a $50 difference in price ($129 versus $179). Apple updated the AirPods Pro Max with new colors and USB-C connectivity, moving away from Lightning connectors but keeping the older H1 chipset. Apple also kept the $249 price tag for the AirPods Pro 2, which have the best audio in Apple’s earbuds lineup, but it did add new features including the ability to use them as hearing aids, with approval coming from the FDA only days after the announcement.
As I’ve said before, I believe that at $249, this development will revolutionize consumer access to hearing aids and could significantly enrich the lives of many people who may be hard of hearing but not necessarily fully dependent on hearing aids yet. I could see the AirPods Pro 2 being extremely useful right away for millions of people around the world with hearing loss. In addition to that, Apple has introduced the ability to test one’s hearing using these AirPods, as well to suggest whether someone should see a doctor about hearing loss.
What’s interesting (or perhaps appalling, depending on your viewpoint) is that the industry has had the technical capability within the chipsets to deliver this functionality for years but hasn’t bothered to do so until now, with Apple taking the lead. Hopefully, Apple’s leadership in this area will push the rest of the industry to adopt similar capabilities, raising the tide for all hard-of-hearing users, so to speak.
Apple’s Upcoming Competition
While I believe that the iPhone 16 base model may be the closest to the Pro model that Apple has ever produced, the reality is that many people are expecting and anticipating Apple Intelligence. Apple Intelligence is at the core of what Apple wants consumers to be excited about, but the company simply cannot give it to them until well into next year. Additionally, Apple doesn’t have any foldables to offer its users, although there are rumors that the company will offer slim and SE models next year. I don’t think that will have much impact, other than helping Apple expand the base of devices capable of Apple Intelligence.
I believe the core of Apple’s strategy right now is to build as large of a base of Apple Intelligence-capable devices as possible so that developers can build apps to take advantage of those capabilities; at that point, Apple can use its scale to beat its competitors like it usually does. Apple’s approach to AI is to make it simple and easy for consumers to use, but if those AI capabilities don’t come out soon, Apple risks losing mindshare among customers, especially outside the U.S. where it has much more competition. I believe this is why the upgrade deals for the iPhone 16 have been so good compared to previous years, and it’s why I expect Apple may have to be price-competitive again in China by next year. Apple won’t have any foldables as a growth engine any time soon, so it will have to compete using Apple Intelligence and pricing instead.
