Apple launches new iPhone and AI at its biggest event of the year – but will it be enough to make you part with your cash?

The latest iPhone is capable of running Apple Intelligence for the first time. But will it be enough to make increasingly reluctant phone users and cash-strapped consumers upgrade their phones?

Apple launched its latest iPhone on Monday night in its biggest release of the year.

As well as the iPhone 16 coming in a new range of colours and having a new camera button, it is also capable of running Apple Intelligence, the company’s new AI, making it the first artificially intelligent smartphone it has made.

Over the next few months, Apple Intelligence will be embedded throughout the phone and other Apple devices, changing the way users edit photos, respond to messages and ask questions.

But will the new technology be enough to make cash-strapped consumers choose the iPhone 16?

What is the iPhone 16’s ‘killer app’?

Which? tech expert Andrew Laughlin says it’s a tough job convincing people to buy new smartphones nowadays.

According to a recent survey run by the consumer group, two thirds of phone users now keep their devices for over three years.

“You really have to work if you want people to be on the premium cycle now,” he told Sky News.

“When it really comes down to it, it’s what’s that killer app? What’s that thing that you get the FOMO [fear of missing out] about?”

He describes portrait mode on the previous iPhone Plus as an example of that “killer app”.

“That spurred on upgrades because you looked at other people’s portraits and you went, ‘Wow, yours look so much better than mine’.”

He said people only want AI if it is going to make life easier rather than just for the sake of it.

“If it can facilitate us doing the things we want quicker and faster, it will blow up like we think it’s going to blow up,” he said.

Apple Intelligence and privacy

Samsung and Google released their own AIs on their phones earlier this year.

“The focus on enhancing AI capabilities to make everyday life easier is typical of Apple’s ‘wait and see’ strategy, where they often decide to take their time with a refined effort, rather than wade in on the latest tech trends,” said Ernest Doku, mobiles expert at Uswitch.com after the launch.

Apple say it is also their focus on privacy which sets Apple Intelligence apart.

Although it runs in partnership with ChatGPT – if Apple Intelligence can’t answer your request, it’ll pass it to ChatGPT – the company says all requests that leave your iPhone will be encrypted and anonymised.

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The event name, It’s Glowtime, was also a reference to the company’s privacy focus.

When Siri or Apple Intelligence is listening to a user, the iPhone’s screen will glow around the edges to make the user aware.

But even though privacy is important to people, Mr Laughlin isn’t convinced it’ll be enough to make shoppers choose Apple Intelligence over Gemini, Google’s AI or Samsung AI.

“Privacy is a driver for people but is it a top driver? No,” he said.

“That’s always going to be price, brand and usability.”

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“Crucially, while these AI features will be central to the iPhone 16 experience, they will only be rolled out to the most expensive models of last year’s iPhone, which means if you aren’t able to upgrade to the latest and greatest, you may miss out,” said Mr Doku.

As well as the new iPhone 16 and Apple Intelligence capabilities, Apple also launched the next generation of Apple watches and AirPods.