Apple Inc.’s (NASDAQ:AAPL) latest iPhone 16, featuring long-awaited AI capabilities, debuted at the Glowtime event on Monday, but failed to create the anticipated buzz among fans.
What Happened: The iPhone 16 launch, which was heavily anticipated, did not meet the high expectations set by Apple’s AI competitors. CEO Tim Cook and other Apple executives took a more laid-back approach to showcasing the new hardware.
The event, dubbed “Glowtime,” was centered around AI, with Apple emphasizing the device’s AI capabilities, including Writing Tools, AI-generated emojis, and the camera’s visual intelligence.
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Despite these features, the event did not leave a lasting impression, especially compared to the flashy announcements made by other AI giants like OpenAI and Alphabet Inc.’s Google.
With 1.5 billion iPhones in use worldwide, according to Wedbush Securities, Apple’s strategy may be to focus on enhancing user experience rather than rushing to break boundaries in AI.
Analysts, including Gene Munster from Deepwater Asset Management, believe that Apple’s approach may be strategic. Munster noted that the new AI features represent a significant paradigm shift, akin to the transition from flip phones to touchscreens. He suggested that consumers will better appreciate these advancements through hands-on experience in Apple stores.
“It’s a new paradigm, and the paradigm will change how almost all humans will interact with tech,” Munster said, reported Business Insider.
Why It Matters: The lackluster response to the iPhone 16 launch has had a tangible impact on Apple’s stock. The company’s shares dipped to a four-week low following the event, falling 1.4% to $218 a share by 3:00 p.m. ET on Monday. The stock further fell 1.15% during Monday’s premarket.
Furthermore, the iPhone 16’s AI features have failed to sway some Chinese buyers, with many opting for Huawei’s AI-enhanced phones instead. This is particularly significant given the importance of the Chinese market in the global smartphone industry.
Meanwhile, a top analyst highlighted a significant omission in the new Apple Watch, unveiled at the same event, which could further impact Apple’s standing in the tech market. Bloomberg columnist Mark Gurman took to X, formerly Twitter, and pointed out that users of Apple Watch Series 6 or newer will lose a vital health feature if they upgrade to the new Apple Watch.
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Photo courtesy: Apple
