Apple enters new AI era with unveiling of iPhone 16, introduces hearing aid capability for AirPods

Apple's ubiquitous iPhone is about to break new ground with a shift into artificial intelligence that will do everything from smartening up Siri to creating customized emojis on the fly.

"The next generation of iPhone has been designed for Apple Intelligence from the ground up. It marks the beginning of an exciting new era," CEO Tim Cook said at a product launch at the tech giant's headquarters in Cupertino, Calif.

Apple has sold billions of iPhones since late co-founder Steve Jobs unveiled the first such device in 2007, helping create about $3 trillion US in shareholder wealth.

But in the past decade, there have been mostly minor upgrades from one model to the next — which has caused people to hold off on buying a new iPhone, and has in part led to a recent slump in sales of Apple's marquee product.

The iPhone 16 is generating a bigger buzz because it is the first model to be tailored specifically for AI, a technology that is expected to trigger the biggest revolution in the industry since Jobs thrust Apple into the smartphone market 17 years ago.

The advances included in the iPhone 16 could set up Apple to be "the gatekeeper of the consumer AI revolution," Wedbush Securities analyst Dan Ives wrote in a research note. Apple's pivot began three months ago with a preview of its new approach during a developers conference, helping build anticipation for Monday's showcase.

A test version of Apple Intelligence will be available in U.S. English next month. It will be available for other localized versions of English in December, and languages including Chinese, French, Japanese and Spanish next year.

The iPhone 16 will use the new A18 chip and have an aluminum back, as well as a new customizable button that can be used for camera controls. The iPhone 16 will start at $1,129 and the iPhone 16 Plus will start at $1,279 in Canada.

Apple also unveiled iPhone 16 Pro and 16 Pro Max, titanium models with a faster chip, the A18 Pro, and more AI capability, such as offering suggestions on how to set up a photo shoot more effectively. The iPhone 16 Pro will start at $1,449 and the 16 Pro Max starts at $1,749.

Apple also unveiled new Watches and AirPods. The new Series 10 Watch starts at $549, is thinner than its predecessor and has an up to 30 per cent larger screen than previous generations.

Apple highlighted the Watch's ability to help with sports and health issues, including finding longer-term conditions such as sleep apnea as well as detecting and responding to emergencies such as a fall.

Apple also launched a new version of the more rugged Watch Ultra 2, starting at $1,099.

Apple's AirPods 4, powered by a new custom H2 chip, start at $179 and come with improved audio quality and personalized spatial audio.

Users can also interact with Siri while using the AirPods by nodding "yes" or shaking their head to say "no" in response to Siri announcements. The charging case has USB-C ports.