CUPERTINO, California: Apple on Monday charged into the artificial intelligence craze with a new iPhone lineup that marks the company’s latest attempt to latch onto a technology trend and transform it into a cultural phenomenon.
The four different iPhone 16 models will all come equipped with special chips needed to power a suite if AI tools that Apple hopes will make its marquee product even more indispensable and reverse a recent sales slump.
Apple’s AI features are designed to turn its often-blundering virtual assistant Siri into a smarter and more versatile sidekick, automate a wide range of tedious tasks and pull off other crowd-pleasing tricks such as creating customized emojis within seconds.
After receiving a standing ovation for Monday’s event, Apple CEO Tim Cook promised the AI package will unleash “innovations that will make a true difference in people’s lives.”
But the breakthroughs won’t begin as soon as the new iPhones — ranging in price from $800 to $1,200 — hit the stores on September 20.
Most of Apple’s AI functions will roll out as part of a free software updates to iOS 18, the operating system that will power the iPhone 16 rolling out from October through December. US English will be the featured language at launch but an update enabling other languages will come out next year, according to Apple.
It’s all part of a new approach that Apple previewed at a developers conference three months ago to create more anticipation for a next generation of iPhones amid a rare sales slump for the well-known devices.
Since Apple’s June conference, competitors such as Samsung and Google have made greater strides in AI – a technology widely expected to trigger the most dramatic changes in computing since the first iPhone came out 17 years ago.
Just as Apple elevated fledgling smartphones it into a must-have technology in 21st-century society, the Cupertino, California, company is betting it can do something similar with its tardy arrival to artificial intelligence.
In an attempt to set itself apart from the early leaders in AI, the technology being baked into the iPhone 16 is being promoted as “Apple Intelligence.” Despite the unique branding, Apple’s new approach mimics many of the features already available in the Samsung Galaxy S24 released in January and the Google Pixel 9 that came out last month.
“Apple could have waited another year for further development, but initial take up of AI- powered devices from the likes of Samsung has been encouraging, and Apple is keen to capitalize on this market,” said PP Foresight analyst Paolo Pescatore.
As it treads into new territory, Apple is trying to preserve its long-time commitment to privacy by tailoring its AI so that most of its technological tricks can processed on the device itself instead of relying on giant banks of computers located in remote data centers. When a task needs to connect to a data center, Apple promises it will be done in a tightly-controlled way that ensures that no personal data is stored remotely.
While corralling the personal information shared through Apple’s AI tools inherently reduces the chances that the data will be exploited or misused against a user’s wishes, it doesn’t guarantee iron-clad security. A device could still be stolen, for instance, or hacked through digital chicanery.
For users seeking to access even more AI tools than being offered by the iPhone, Apple is teaming up with OpenAI to give users the option of farming out more complicated tasks to the popular ChatGPT chatbot.
Although Apple is releasing a free version of its operating system to propel its on-device AI features, the chip needed to run the technology is only available on the iPhone 16 lineup and the high-end iPhone 15 models that came out a year ago.
That means most consumers who are interested in taking advantage of Apple’s approach to AI will have to buy one of the iPhone 16 models – a twist that investors are counting on will fuel a surge in demand heading into the holiday season.
The anticipated sales boom is the main reason Apple’s stock price has climbed by more than 10 percent, including a slight uptick Monday after the shares initially slipped following the showcase for the latest iPhones.
Besides its latest iPhones, Apple also introduced a new version of its smartwatch that will include a feature to help detect sleep apnea as well the next generation of its wireless headphones, the AirPods Pro, that will be able to function as a hearing aid with an upcoming software update.
Apple embraces the AI craze with its newly unleashed iPhone 16 lineup
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Apple embraces the AI craze with its newly unleashed iPhone 16 lineup
- Apple’s AI features are designed to turn its often-blundering virtual assistant Siri into a smarter and more versatile sidekick
How Netflix won Hollywood’s biggest prize, Warner Bros Discovery
- Board rejected Paramount’s $30 a share bid amid funding concerns, sources say
- Warner Bros board met daily before accepting Netflix’s binding offer
LOS ANGELES/NEW YORK: What started as a fact-finding mission for Netflix culminated in one of the biggest media deals in the last decade and one that stands to reshape the global entertainment business landscape, people with direct knowledge of the deal told Reuters. Netflix announced on Friday it had reached a deal to buy Warner Bros Discovery’s TV, film studios and streaming division for $72 billion. Although Netflix had publicly downplayed speculation about buying a major Hollywood studio as recently as October, the streaming pioneer threw its hat in the ring when Warner Bros Discovery kicked off an auction on October 21, after rejecting a trio of unsolicited offers from Paramount Skydance .
Details of Netflix’s plan and the Warner Bros board’s deliberations, based on interviews with seven advisers and executives, are reported here for the first time.
Initially motivated by curiosity about its business, Netflix executives quickly recognized the opportunity presented by Warner Bros, beyond the ability to offer the century-old studio’s deep catalog of movies and television shows to Netflix subscribers. Library titles are valuable to streaming services as these movies and shows can account for 80 percent of viewing, according to one person familiar with the business.
Warner Bros’ business units — particularly its theatrical distribution and promotion unit and its studio — were complementary to Netflix. The HBO Max streaming service also would benefit from insights learned years ago by streaming leader Netflix that would accelerate HBO’s growth, according to one person familiar with the situation. Netflix began flirting with the idea of acquiring the studio and streaming assets, another source familiar with the process told Reuters, after WBD announced plans in June to split into two publicly traded companies, separating its fading but cash-generating cable television networks from the legendary Warner Bros studios, HBO and the HBO Max streaming service.
Netflix and Warner Bros did not reply to requests for comment.
The work intensified this autumn, as Netflix began vying for the assets against Paramount and NBCUniversal’s parent company, Comcast.
Warner Bros kicked off the public auction in October, after Paramount submitted the first of three escalating offers for the media company in September. Sources familiar with the offer said Paramount aimed to pre-empt the planned separation because the split would undercut its ability to combine the traditional television networks businesses and increase the risk of being outbid for the studio by the likes of Netflix.
Around that time, banker JPMorgan Chase & Co. was advising Warner Bros Discovery CEO David Zaslav to consider reversing the order of the planned spin, shedding the Discovery Global unit comprising the company’s cable television assets first. This would give the company more flexibility, including the option to sell the studio, streaming and content assets, which advisers believed would draw strong interest, according to sources familiar with the matter.
Executives for the streaming service and its advisory team, which included the investment banks Moelis & Company, Wells Fargo and the law firm Skadden, Arps, Slate, Meagher & Flom, had been holding daily morning calls for the past two months, sources said. The group worked throughout Thanksgiving week — including multiple calls on Thanksgiving Day — to prepare a bid by the December 1 deadline.
Warner Bros’ board similarly convened every day for the last eight days leading up to the decision on Thursday, when Netflix presented the final offer that sources described as the only offer they considered binding and complete, sources familiar with the deliberations said.
The board favored Netflix’s deal, which would yield more immediate benefits over one by Comcast. The NBCUniversal parent proposed merging its entertainment division with Warner Bros Discovery, creating a much larger unit that would rival Walt Disney. But it would have taken years to execute, the sources said.
Comcast declined to comment.
Although Paramount raised its offer to $30 per share on Thursday for the entire company, for an equity value of $78 billion, according to sources familiar with the deal, the Warner Bros board had concerns about the financing, other sources said.
Paramount declined comment.
To reassure the seller over what is expected to be a significant regulatory review, Netflix put forward one of the largest breakup fees in M&A history of $5.8 billion, a sign of its belief it would win regulatory approval, the sources said. “No one lights $6 billion on fire without that conviction,” one of the sources said.
Until the moment late on Thursday night when Netflix learned its offer had been accepted — news that was greeted by clapping and cheering on a group call — one Netflix executive confided that they thought they had only a 50-50 chance.
