New wearables shine, but AI lags

During Apple’s last annual iPhone event, where the company introduced 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 offered near-parity silicon within the base iPhone and the Pro model. Apple also announced new AirPods, a new Apple Watch, and some software upgrades to add functionality to the existing AirPods Pro 2.

The new iPhone 16

As usual, Apple has announced the iPhone 16 as the best iPhone it has ever made. This launch represents a change in Apple’s approach, given that the new base model iPhones come with Apple’s new A18 silicon. You’d think that’s normal, but the company has long held back newer chip updates for the Pro series and erratic chip availability. This hasn’t completely 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 skipped the A17 chip entirely for the iPhone 16, switching to the A18 for the base model phone and the A18 Pro chip in the iPhone 16 Pro. So I expect there will be some sort of gap in specs between the two chips, but it’s likely to be the smallest in Apple’s recent history.

A notable improvement this year is that Apple has decided to orient the cameras so that even the base model iPhone can capture video and spatial photos, which was previously a feature reserved for the Pro models. Apple also decided that it would bring parity to the cameras on the iPhone 16 Pro and 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 on both models. This has caused many users, myself included, to downsize to the smaller iPhone 16 Pro. Yes, there’s a bump in both screen size and battery life, but the iPhone 16 Pro’s battery life is already pretty 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 lighter and more comfortable to hold, and for people like my new adoptive wife, it’s a much easier transition from a regular iPhone. When using a case or accessory like the clickpad I reviewed earlier this year, the iPhone 16 Pro Max is simply underwhelming, and while the 6.9-inch display may be enticing to some, it’s limited to a tablet in size.

The race for AI dominance

The biggest problem with the new iPhone 16 series isn’t the design or the hardware specs, although the design has largely remained the same since the iPhone 11 Pro. The main problem is that Apple is introducing its Apple Intelligence AI capabilities months before they are actually available. In fact, at launch, many of Apple’s stores were set up to showcase the new version of Siri for the iPhone 16, which won’t be available until spring 2025, nearly six months after launch.

The new Siri is one of the cornerstones of Apple’s AI strategy and is designed to be a kind of agent to take advantage of all the new capabilities of Apple’s Intelligence. Given the delay between the launch of the iPhone 16 and the availability of 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 hasn’t really launched its full AI capabilities yet. I believe that Apple has allowed its marketing hype to rush ahead of its product offerings — even though Apple’s AI product is far from finished — because it feels pressure from the rest of an industry that is racing to adopt and integrate AI. .

The Apple Watch goes big

The new Apple Watch 10 series introduces a largely iterative approach to the Apple Watch, with the biggest improvements coming in screen size and display quality. Previously, if you wanted a large 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 to match. On the contrary, with the new Series 10, you can enjoy a bigger and brighter screen with better viewing angles without having to spend $800 or more.

While Apple introduced a new color (titanium black) for the Apple Watch Ultra 2, it didn’t really do much outside of size and display improvements for the Series 10. Apple made the Series 10 thinner, which is welcome , but not necessarily as important as the oxygen sensor, 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 cancellation, which makes a $50 difference in price ($129 vs. $179). . Apple updated the AirPods Pro Max with new colors and USB-C connectivity, moving away from Lightning connectors but keeping the older H1 chip. Apple also kept the $249 price for the AirPods Pro 2, which have the best audio in Apple’s headphone lineup, but it added new features including the ability to use them as hearing aids, with approval coming from FDA just 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 yet fully dependent on hearing aids. hearing aids. I could see the AirPods Pro 2 being incredibly useful right away for millions of people around the world with hearing loss. In addition, Apple has introduced the ability to test one’s hearing using these AirPods, as well as suggest whether one should visit a doctor for hearing loss.

What’s interesting (or perhaps terrifying, depending on your point of view) is that the industry has had the technical capability within chips to provide this functionality for years, but hasn’t bothered to do so until now, with Apple taking direction. Hopefully, Apple’s leadership in this area will push the rest of the industry to adopt similar capabilities, raising the bar for all hard-of-hearing users, so to speak.

Apple’s next competition

While I believe that the base model of the iPhone 16 may be the closest to the Pro model that Apple has ever produced, the reality is that many people expect and anticipate Apple Intelligence. Apple Intelligence is at the core of what Apple wants consumers to be excited about, but the company simply can’t deliver to them until next year. Moreover, Apple does not have any foldable devices to offer its users, although there are rumors that the company will offer slim and SE models next year. I don’t think this will have much of an impact, other than helping Apple expand the base of Apple Intelligence-capable devices.

I believe the core of Apple’s strategy right now is to build as large a base of Apple Intelligence-capable devices as possible so that developers can build apps to take advantage of these capabilities; at that point, Apple can use its scale to beat its competitors as it usually does. Apple’s approach to AI is to make it simple and easy for consumers to use, but if these AI capabilities don’t come out soon, Apple risks losing opinion among customers, especially outside the US where there are many more too much competition. I believe this is why the upgrade deals for the iPhone 16 have been so good compared to previous years, and this is why I expect Apple may have to be price competitive again in China by next year. Apple won’t have any foldable devices as a growth engine anytime soon, so it will have to compete using Apple Intelligence and spot pricing.