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.

Apple’s latest iPhone with its A18 chip, which is set to be unveiled at an event on Monday, has been developed using SoftBank-owned Arm’s newest V9 chip design, the Financial Times newspaper reported on Saturday.

Apple is set to host its fall event on Sept. 9 at its headquarters in Cupertino, California, where it will likely unveil a series of new iPhones and updates to other devices and apps, Reuters reported.

Apple signed a deal with Arm in September last year that "extends beyond 2040" in a boost for Arm for chip technology.

Arm had said in July that its V9 chip accounts for 50% of smartphone revenue.

Arm owns the intellectual property behind the computing architecture for most of the world's smartphones, which it licenses to Apple and many others.

Apple uses Arm's technology in the process of designing its own custom chips for its iPhones, iPads and Macs.

The two companies have a long history - Apple was one of the initial companies that partnered to found the firm in 1990, before the release of its "Newton" handheld computer in 1993, which used an Arm-based processor chip.

The Newton flopped, but Arm went on to become dominant in mobile phone chips because of its low power consumption, which helps batteries last longer.

Japan's defence ministry on Friday said it will invest in AI, automation and improving troop conditions to address a worsening recruitment shortfall that has left its forces understaffed amid a build up aimed at countering China's growing military power.

The measures, unveiled in its latest defence budget request on Friday, come after the Self Defense Forces' (SDF) worst ever annual recruitment drive. In the year to March 31 it enrolled just under 10,000 sailors, soldiers and air personnel, half of its target, Reuters reported.

Fearful that China could use military force to bring neighbouring Taiwan under its control and drag Japan into a war, Prime Minister Fumio Kishida in 2022 announced a doubling in defense spending to stock up on missiles and other munitions, pay for advanced fighter jets and create a cyber defence force.

Japan's falling birth rate, however, mean it is struggling more than ever to maintain current SDF troop levels at 250,000 people.

"As we increase our defensive strength, we need to build an organisation that is able to fight in new ways," the defence ministry said in the annual budget request, which calls for a 6.9% spending increase to a record 8.5 trillion yen ($59 billion)

To cope with fewer recruits, the ministry said it will introduce artificial intelligence technology, allocating 18 billion yen next year for an AI surveillance system for military base security.

It will also buy more unmanned drones and order three highly-automated air defense warships for 314 billion yen that require only 90 sailors, less than half the crew of current ships.

To free up more troops for frontline assignments the SDF will also outsource some training and support operations to former SDF members and civilian contractors.

And in a bid to tap Japan's shrinking pool of fighting-age people, who are also being pursued by companies able to pay more, it plans to offer financial incentives and better living conditions, such as sleeping quarters with more privacy and improved access to social media.

In particular, it is focusing on luring more women, who make less than 10% of the SDF. Attempts to boost their number have been hindered by a series of high-profile sexual harassment cases.

To help turn around that effort, Japan's military wants 16.4 billion yen to build accommodation for female personnel, with improved toilets and showers. It also said it will hire outside councilors to support women and strengthen harassment training.