Apple iPhone 16 camera upgrades impress as AI features delayed

Zoom in: Both the iPhone 16 and iPhone 16 Pro models have a dedicated camera button on the side that will make it easier to take photos and videos.

• Upgraded hardware will also give users more control over audio and video recording, including isolating specific voices and higher resolution slow-motion format.
• "You can see the whole TikTok universe starting to show up here — stitching audio, built-in image processing," The Verge's David Pierce observed in a live blog. "And the more you can do in-camera and on-device, the more creators will buy into this stuff."

The big picture: The iPhone remains the single most important product to Apple, accounting for more than 50% of its sales.

• Beyond its financial significance, the iPhone is a key gateway for Apple to draw customers into high-margin services, such as apps, games and music.

Reality check: Apple has been building anticipation for the new iPhone around new generative AI features. And to that end, many parts of today's presentation felt like a rerun of June's developer conference announcements.

• But as Bloomberg's Mark Gurman has reported, those will be rolled out slowly and the newest phones will not have them at launch on September 20.

Between the lines: Some Apple analysts are still bullish on strong iPhone sales growth this year.

• Other Apple watchers, less so: Gurman writes that due to the staggered rollout approach it's "unlikely for the AI platform to be compelling enough to drive serious upgrades this year."
• "By fall of 2025, when it's time for the next iPhone, Apple should be in a stronger position. Apple Intelligence will be fleshed out and available in more of the world. Moreover, the iPhone will have a real upgrade driver: a new look."

What we're watching: Apple faces plenty of other hurdles, including growing competition in China, where Huawei is set to release a trifold smartphone, and EU regulations limiting Apple Intelligence.