On Monday, Apple unveiled its highly anticipated iPhone 16, enhanced with AI capabilities, alongside promised upgrades to the Siri personal assistant and upcoming software updates set for testing next month. CEO Tim Cook described the launch as the start of “an exciting new era” driven by Apple Intelligence.

Apple’s stock closed slightly higher at $220.91, just hours before Huawei’s announcement of a tri-fold phone, emphasizing the competitive landscape Apple faces. Notably, Apple has yet to announce a Chinese AI partner for the iPhone 16, a key market where AI competition is heating up.

Globally, tech companies are racing to integrate AI into their products, with smartphones becoming a major battleground. Apple is betting that AI will encourage consumers to upgrade amidst declining iPhone sales. Apple Intelligence will enhance Siri’s functionality and improve object recognition via the camera, with a test version launching in English next month, followed by other languages in 2024.

The iPhone 16 and 16 Plus models feature new chips and an aluminum frame, while the high-end 16 Pro and Pro Max versions incorporate titanium and advanced AI, including photography and audio-editing suggestions. These AI-driven capabilities stem from the latest ARM architecture designed to optimize AI performance.

Despite excitement, analysts like IDC’s Nabila Popal predict that some consumers may wait to upgrade until AI features are fully realized. Meanwhile, Huawei has already secured over 3 million pre-orders for its tri-fold phone, signaling strong competition in the Chinese market.

Apple also introduced new Watches and AirPods with enhanced health features, including tools to detect sleep apnea and respond to emergencies. The AirPods now offer hearing aid functionalities pending U.S. regulatory approval. While iPhones accounted for over half of Apple’s $383 billion revenue last year, challenges persist, particularly in China, where Apple fell out of the top five smartphone vendors.

Apple’s AI features may also be available on iPhone 15 Pro models. Rivals like Google are similarly pushing AI innovations, with Google focusing on AI-powered Pixel smartphones and expanding features to Android devices by Samsung and Motorola. European regulations, however, have delayed Apple’s AI rollout in that region.