*

IPhone 16 is first Apple ( AAPL ) smartphone designed around AI

features

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Apple's ( AAPL ) AI tech, Apple Intelligence, so far has a release

timeline only in the U.S.

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Huawei to announce new products hours after Apple's ( AAPL ) event

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Google has showcased AI features to challenge Apple's ( AAPL )

dominance

By Kenrick Cai

SAN FRANCISCO, Sept 9 (Reuters) - Apple ( AAPL ) on

Monday is set to unveil its iPhone 16 lineup, focusing on how

its flagship device's features have been infused with artificial

intelligence, rather than its usual emphasis on hardware

upgrades.

The event at the tech giant's Apple Park headquarters at 10 a.m.

PDT (1700 GMT) follows its developer conference in June during

which the company unveiled Apple Intelligence, its take on

generative AI that can conjure text, images and other content on

command.

It had also showed off an improved version of voice

assistant Siri, featuring an integration with ChatGPT, the

chatbot developed by Microsoft ( MSFT )-backed OpenAI.

The refresh comes as iPhones face stiff competition from Huawei

in China, where consumers are hankering for more AI

features and are willing to pay for them. Huawei itself has

scheduled its own product announcement mere hours after Apple's ( AAPL )

event.

Apple Intelligence must be approved by Beijing in order to

be released in the Chinese market. In July, OpenAI blocked

access to ChatGPT in China, a move that could impact the

chatbot's integration into Siri.

"The Chinese market is hungrier for AI features than the

U.S. market," said Ben Bajarin, CEO and principal analyst at

Creative Strategies. "It will be very difficult to bring it to

China immediately, so they'll be going off the merits of the

hardware."

IPhones accounted for more than half of Apple's ( AAPL ) $383 billion

sales last year, and the new devices are an important update for

the Cupertino, California-based company that is betting the AI

feature will drive consumers to upgrade amid a slowdown in

iPhone sales.

In China, Apple ( AAPL ) aggressively slashed prices earlier this year,

prompted by government restrictions and increased domestic

competition.

The iPhone 16 lineup will be the first Apple ( AAPL ) smartphones

designed around these AI features, though those will also be

available on iPhone 15 Pro and Pro Max, the top-end versions of

the previous-generation devices. New versions of the Apple Watch

and AirPods are also expected.

"The software side, and how Apple ( AAPL ) frames it, is the biggest

question," said Bajarin. "Investors will look for if it's

compelling enough to have a larger than normal upgrade cycle."

Rivals including Alphabet's Google are also

showcasing AI features to try to upend Apple's ( AAPL ) dominance in the

high-end smartphone market.

Google, developer of the Android operating system which competes

with Apple's ( AAPL ) iOS, traditionally announced its Pixel smartphones

in the autumn. This year, it pushed the event to August ahead of

Apple's ( AAPL ) announcement.

Google focused on AI features including Gemini Live, which

allows users to hold live voice conversations with a digital

assistant. Many of the AI features Google announced were also

rolled out to the Android-based devices made by manufacturers

such as Samsung and Motorola.

"The question is who is going to be the first to combine a

truly personal AI assistant with knowledge and information that

is accurate and personalized," said Bob O'Donnell, chief analyst

for TECHnalysis Research.

Apple ( AAPL ) has so far shared a timeline for the release of Apple

Intelligence only in the United States, where it is slated to

launch on compatible devices in the autumn.

In June, one week after its developer conference, Apple ( AAPL ) said it

would delay the release in Europe due to European Union tech

rules.