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Apple iPhone 16 event shows off AI muscle, new Watches and AirPods

Huawei has scheduled an official announcement of its Mate XT Z-fold phone on Tuesday in China.

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Apple opens new tab on Monday unveiled its long-awaited, artificial intelligence-boosted iPhone 16 and promised improvements in its Siri personal assistant as it rolled out new software, beginning in test mode next month, Reuters reported.

"The next generation of iPhone has been designed for Apple Intelligence from the ground up. It marks the beginning of an exciting new era," Chief Executive Tim Cook said at a product launch.

Shares of Apple closed barely changed for the day at $220.91. Apple's event came hours before China's Huawei launches a tri-fold phone, underscoring the competitive challenge the iPhone maker faces. Apple has yet to announce an AI partner in China to power the 16s.

Apple and technology companies around the world are racing to add AI to products, and phones are expected to be among the most important battlegrounds. The Cupertino, California-based company also is betting the AI feature will drive consumers to upgrade amid a slowdown in iPhone sales.

Apple Intelligence, the company's AI software, will be used to improve Siri as well as enhancing features such as understanding and identifying objects captured by the phone camera, executives said.

A test version of Apple Intelligence will be available in the U.S. version of the English language next month. It will be available for other localized versions of English in December, with versions in languages including Chinese, French, Japanese and Spanish next year. Features including improvements to Siri will be rolled out over time, Apple said. It did not say, however, when it would move beyond test, read the report.

The iPhone 16 and 16 Plus will cost the same as models they replace and use a new chip and an aluminum case. A customizable button that can control the camera was one of the most touted hardware features in a format that looks similar to previous models.

The higher-end 16 Pro and 16 Pro Max are made from titanium and have more AI capability, such as offering suggestions on how to set up a photo shoot more effectively and audio-editing capabilities aimed at professional-level video production.

Apple's new iPhone chips use the latest version of Arm's architecture that includes specific features to speed AI applications.

"Existing iPhone users who have had their device for 3-4 years will definitely be enticed to upgrade, even if some things are rolling out later, as this will future-proof their device for AI," said International Data Corp analyst Nabila Popal.

Still, several analysts described the delays in features as keeping many potential buyers on the sidelines initially.

"You might see people wait a little bit to see how these things work out, how well they function, and then they'll start to investigate it. But I don't think we'll see the mad rush that we've seen in years past," said TECHnalysis Research founder Bob O'Donnell.

By comparison, Huawei's website showed on Monday that it had garnered more than 3 million pre-orders for its Z-shaped tri-fold phone ahead of its official unveiling. This underscores Huawei's ability to navigate U.S. sanctions and solidifies its position against Apple in China, where consumers are hankering for more AI features and are willing to pay for them, Reuters reported.

Apple also unveiled new Watches and AirPods with health-focused capabilities, as well as hardware-design improvements. Apple highlighted the Watch's ability to discover longer-term health conditions such as sleep apnea as well as detecting and responding to emergencies such as a fall.

As it updated AirPods, Apple rolled out hearing-aid features that it has submitted for U.S. regulatory review.

Apple fans globally have been waiting to see the new phones with AI. IPhones accounted for more than half of Apple's $383 billion sales last year.

"While Android phones may have some of these features, Apple has packaged them well and will be able to market them far more broadly," said D.A. Davidson analyst Gil Luria.

China offers particular challenges to Apple.

"Apple fell out of the list of top five smartphone vendors in China in Q2," said eMarketer senior technology analyst Gadjo Sevilla. "It was the first time that China's domestic smartphone firms held all five spots. Since Apple Intelligence still needs to be approved by Beijing for a rollout in China, it will likely not initially be a key driver for adoption in the region."

In China, Apple aggressively slashed prices earlier this year, prompted by government restrictions and increased domestic competition, read the report.

The iPhone 16 lineup is the first Apple smartphones designed around these AI features though those are expected also to be available on iPhone 15 Pro and Pro Max, the top-end versions of the previous-generation devices.

Rivals including Alphabet's, opens new tab Google are also showcasing AI features to try to upend Apple's dominance in the high-end smartphone market.

Google, developer of the Android operating system which competes with Apple's iOS, focused its Pixel smartphone rollout event in August 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, opens new tab and Motorola, opens new tab.

In June, one week after its developer conference, Apple said it would delay the release of AI-powered features in Europe due to European Union tech rules.

Huawei has scheduled an official announcement of its Mate XT Z-fold phone on Tuesday in China, Reuters reported.

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US Treasury says Chinese hackers stole documents in ‘major incident’

A spokesperson for the Chinese Embassy in Washington rejected any responsibility for the hack, saying that Beijing “firmly opposes the U.S.’s smear attacks against China without any factual basis.”

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Chinese state-sponsored hackers breached the U.S. Treasury Department's computer security guardrails this month and stole documents in what Treasury called a "major incident," according to a letter to lawmakers, that Treasury officials provided to Reuters on Monday.

The hackers compromised third-party cybersecurity service provider BeyondTrust and were able to access unclassified documents, the letter said.

According to the letter, hackers "gained access to a key used by the vendor to secure a cloud-based service used to remotely provide technical support for Treasury Departmental Offices (DO) end users. With access to the stolen key, the threat actor was able to override the service’s security, remotely access certain Treasury DO user workstations, and access certain unclassified documents maintained by those users."

The Treasury Department said it was alerted to the breach by BeyondTrust on Dec. 8 and that it was working with the U.S. Cybersecurity and Infrastructure Security Agency and the FBI to assess the hack's impact.

Treasury officials didn't immediately respond to an email seeking further details about the hack. The FBI did not immediately respond to Reuters' requests for comment, while CISA referred questions back to the Treasury Department.

A spokesperson for the Chinese Embassy in Washington rejected any responsibility for the hack, saying that Beijing "firmly opposes the U.S.'s smear attacks against China without any factual basis."

A spokesperson for BeyondTrust, based in Johns Creek, Georgia, told Reuters in an email that the company "previously identified and took measures to address a security incident in early December 2024" involving its remote support product. BeyondTrust "notified the limited number of customers who were involved," and law enforcement was notified, the spokesperson said. "BeyondTrust has been supporting the investigative efforts."

The spokesperson referred to a statement posted on the company'swebsite, on Dec. 8 sharing some details from the investigation, including that a digital key had been compromised in the incident and that an investigation was under way. That statement was last updated Dec. on 18.

Tom Hegel, a threat researcher at cybersecurity company SentinelOne (S.N), said the reported security incident "fits a well-documented pattern of operations by PRC-linked groups, with a particular focus on abusing trusted third-party services - a method that has become increasingly prominent in recent years," he said, using an acronym for the People's Republic of China."

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Science & Technology

Iran lifts ban on WhatsApp and Google Play, state media says

Social media platforms were widely used in anti-government protests in Iran.

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Iranian authorities have lifted a ban on Meta's instant messaging platform WhatsApp and Google Play as a first step to scale back internet restrictions, Iranian state media reported on Tuesday.

The Islamic Republic has some of the strictest controls on Internet access in the world, but its blocks on U.S.-based social media such as Facebook, Twitter and YouTube are routinely bypassed by tech-savvy Iranians using virtual private networks, Reuters reported.

"A positive majority vote has been reached to lift limitations on access to some popular foreign platforms such as WhatsApp and Google Play", Iran's official IRNA news agency said on Tuesday, referring to a meeting on the matter headed by President Masoud Pezeshkian.

"Today the first step in removing internet limitations... has been taken," IRNA cited Iran's Minister of Information and Communications Technology Sattar Hashemi as saying.

Social media platforms were widely used in anti-government protests in Iran.

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Science & Technology

Trump says it could be worth keeping TikTok in US for a little while

Trump met with TikTok’s CEO on Monday. Trump said at a news conference the same day that he had a “warm spot” for TikTok thanks to his campaign’s success on the app.

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President-elect Donald Trump indicated on Sunday that he favored allowing TikTok to keep operating in the United States for at least a little while, saying he had received billions of views on the social media platform during his presidential campaign, Reuters reported.

Trump's comments before a crowd of conservative supporters in Phoenix, Arizona, were one of the strongest signals yet that he opposes a potential exit of TikTok from the U.S. market.

The U.S. Senate passed a law in April requiring TikTok's Chinese parent company, ByteDance, to divest the app, citing national security concerns.

TikTok's owners have sought to have the law struck down, and the U.S. Supreme Court has agreed to hear the case. But if the court does not rule in ByteDance's favor and no divestment occurs, the app could be effectively banned in the United States on Jan. 19, one day before Trump takes office.

It is unclear how Trump would go about undoing the TikTok divestiture order, which passed overwhelmingly in the Senate, read the report.

"I think we're going to have to start thinking because, you know, we did go on TikTok, and we had a great response with billions of views, billions and billions of views," Trump told the crowd at AmericaFest, an annual gathering organized by conservative group Turning Point.

"They brought me a chart, and it was a record, and it was so beautiful to see, and as I looked at it, I said, 'Maybe we gotta keep this sucker around for a little while'," he said.

Trump met with TikTok's CEO on Monday. Trump said at a news conference the same day that he had a "warm spot" for TikTok thanks to his campaign's success on the app.

The Justice Department has argued that Chinese control of TikTok poses a continuing threat to national security, a position supported by most U.S. lawmakers, Reuters reported.

TikTok says the Justice Department has misstated the social media app's ties to China, arguing that its content recommendation engine and user data are stored in the United States on cloud servers operated by Oracle Corp (ORCL.N), opens new tab, while content moderation decisions that affect U.S. users are made in the United States.

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