iPhone 16: Will Apple’s promising smartphone for Europe remain just an iPhone light?

A music video, filmed entirely on an iPhone, the sound recorded on an iPhone, visually edited, color corrected and mixed with the help of Apple’s artificial intelligence: What Apple showed as part of the presentation of the new iPhone 16 Pro Max seemed like a glimpse into the future of multimedia production. All videos, sounds and sensor data are recorded with a single device.

Post-production is quick and live, using artificial intelligence that optimizes the sound, corrects the color mix, selectively cuts images, and adjusts the image section. The iPhone Pro, which should become clear during the presentation, is a tool for intensive users who want to constantly document their everyday lives in the highest quality.

Only Apple knows how many customers actually use the phone like that and how many more see it as just a status symbol. But the message that Apple has recognized with the help of R&B pop star and brand ambassador “The Weeknd” is clear: professionals should continue to choose Apple, even though Android devices such as Google’s Pixel Pro are now almost identical in terms of hardware and software.

But beyond professional users and status buyers, Apple customers are faced with the same question as every year: Why should I spend at least 1000 euros on a current iPhone when I can get the previous devices for about half the price, with the same build quality and slightly outdated hardware that is sufficient for 90 percent of all users in everyday life?

Tim Cook’s answer this year was: “Apple Intelligence.” The Apple CEO announced that the new iPhones would be the first “designed from the ground up for Apple Intelligence and its groundbreaking capabilities.”

And during the presentation, Apple actually showed many AI functions that appear to be useful in everyday life: email summaries, for example, or a much smarter AI assistant Siri. The AI ​​appears to be deeply integrated into the system, taking on the role of quickly and imperceptibly helping the user. Apple’s approach to using AI in everyday life differs noticeably from the competition.

AI is not only a voice assistant, but also helps with telephone operation. The catch, however, is that many of the functions shown are not yet available to customers – and will never be in Europe, thanks to regulation.

In June, Apple surprisingly announced that many of the new AI features would not be available to European customers for the time being: “Due to the regulatory uncertainties caused by the Digital Markets Act, we do not believe we will be able to make Apple Intelligence available to our EU users (…) this year.”

Apple justified this measure with privacy and security concerns, as the company’s competitor does not want to grant access to its customers’ data. However, the company said at the time that it was “determined to work with the European Commission to find a solution.”

It is unclear whether Apple Intelligence will come to Europe

But this solution does not seem to have been found yet, as Apple managers did not mention the EU in their presentation. Initially, Apple Intelligence will only work in English and in the USA, with other English dialects such as those for the United Kingdom, Australia or South Africa to be available at the end of 2024.

Chinese, French, Japanese and Spanish will be supported from 2025. But German was not mentioned at all and the question of when and whether Apple Intelligence will also be available in the EU remained completely open.

At least the current generation of Apple’s AI smartphone will remain a kind of iPhone 16 light for German users until at least next year. Given this, many customers could wait to upgrade or go for the previous device.

Meanwhile, Google is showing with its current Pixel 9 that AI can be brought onto smartphones despite EU regulations. Here, too, English is initially the language of choice, but Google’s AI Gemini already works with it in this country.

“The new iPhone cycle is crucial for Apple after several years of lackluster sales, especially in China,” commented Anisha Bhatia, senior technology analyst at GlobalData. “Apple is the last major manufacturer to integrate AI into its devices. The AI ​​models used to do this will learn and adapt dynamically from individual users. The integration of this technology into Apple’s ecosystem will be gradual over the next few years. Meanwhile, Google will bring its Gemini AI models to 200 million Android devices by the end of 2024.”

If Google also activates full AI support in the Android ecosystem in the EU, the company will have a significant advantage over Apple when it comes to training its algorithms. This is because companies need as much data as possible for training. And Apple collects this data less aggressively anyway thanks to its business models that focus on user privacy.

Thanks to Android, Google can also get data from significantly more users. This could make it much easier for the tech company to further develop its AI software. In terms of hardware and camera, the current Google flagship Pixel 9 Pro appears to be on par with the iPhone 16 Pro. Many of Apple’s AI functions – such as on-screen search – are also already available on Google.

However, as much as the companies advertise their AI functions, the effect on future sales figures seems unclear. So far, consumers have not recognized new AI functions as the main reason for an upgrade. Samsung, the tech group’s biggest competitor, has also heavily advertised new AI capabilities. According to a survey by smartphone specialist BayStreet Research in the USA, artificial intelligence is only a minor selling point after an initial sales boost. “AI has not yet reached the masses,” Cliff Maldonado, senior analyst at BayStreet Research, told the Wall Street Journal.

Apple could certainly use a boost for its main product. Last year, which ended in September, iPhone sales fell short of the previous two years. The company sold around 225 million devices worldwide, around six percent less than in the previous fiscal year.

Benedict Fuest is business correspondent for Innovation, Networld and IT.

Laurin Meyer is business correspondent for WELT in New York. He mainly reports on the American economic policy, German companies in the United States and Big Tech. He is also co-host of the WELT podcast “All on stocks”.