Apple has been under pressure to rekindle interest for the iPhone due to declining sales.

The tech giant debuted the iPhone 16, which has an external camera button, on Monday.

This button alludes to internal adjustments made by Apple with an emphasis on utilising artificial intelligence (AI).

CEO Tim Cook said that the improvements would “push the boundaries of what a smartphone can do,” yet other companies have already incorporated generative AI elements, so Apple faces fierce competition. After the iPhone 16 and other items were unveiled at Apple’s “Glowtime” event, the company’s stock price fell, leaving the day without any gains. The $3 trillion firm is worried that it is lagging behind in AI innovation.

Sales of iPhones, which account for about half of Apple’s income, have decreased; in the nine months that ended on June 29, they fell 1% from the same period the previous year.

With its longer-lasting batteries, more potent chips, and improved privacy features, Apple’s latest phones are built with artificial intelligence (AI) and new “Apple Intelligence” technologies, which were unveiled in June. These comprise writing instruments, emoji creation tools, and ChatGPT integration for text generation and enquiries with Siri.

Apple also revealed improvements for the AirPods and Apple Watch. You may now shake your head to end a call on the AirPods and lower the volume during face-to-face interactions. In the event that regulations allow, which is anticipated this autumn in more than 100 countries, the Pro model of the AirPods can also function as a “clinical-grade” hearing aid for those with mild to severe hearing loss. Apple used to permit consumers to pair their iPhones and other devices with their hearing aids.

Across the street from the event, there were demonstrations calling on Apple to do more to shield kids from inappropriate content in the App Store. One such demonstration featured a sizable blow-up that looked like Mr. Cook.

The new iPhone 16 will go on sale in September for $799; however, the Apple Intelligence capabilities won’t be accessible in the US until October and in the UK by December. While some may view the new camera control as just a “glorified shutter button,” Ben Wood, chief analyst at CCS Insight, pointed out that the improvements—including AI-powered visual search—were significant and might win over customers.

He remarked, “The combination of Apple Intelligence and new camera features on the iPhone 16 will help spur upgrades from loyal Apple customers.”

Apple has fallen behind rivals like Google and Samsung, who are creating folding and tri-folding devices and have incorporated generative AI for online browsing, translation, and photo editing.

Over three million units of Huawei’s new tri-fold Mate XT phone were reportedly pre-ordered on Monday. Apple’s delayed entry into AI-ready smartphones makes it “critical” that they work effectively, according to Gartner analyst Annette Zimmermann, who also warned against early rollouts that could damage the brand or result in lost sales.