Apple’s latest base model, the iPhone 16, has arrived with a distinct mission: to offer significant upgrades over the iPhone 15 while holding the line on cost. With a starting price of $800 for the 128GB configuration, the device maintains affordability in a market where competitors are increasingly hiking prices. While the price remains steady, the hardware itself has undergone a refresh designed to separate it from its predecessor, primarily through physical changes and a pivot toward artificial intelligence.
Hardware Tweaks and the Return of the Vertical Camera
At a glance, the iPhone 16 retains the familiar 6.1-inch form factor, aluminum frame, and matte glass back of the iPhone 15. It also keeps standard staples like the USB-C port and IP68 water and dust protection. However, the design language has shifted. Apple has reintroduced a vertical pill-shaped camera arrangement, a look not seen since the iPhone 12. This isn’t just a nostalgic nod to the iPhone X era; it is a functional necessity. The new alignment allows the base model to capture Spatial Video, a 3D format designed explicitly for the Vision Pro headset, which requires linear lens placement to function correctly.
The most tangible changes, however, are in the buttons. The iPhone 16 ditches the traditional mute switch for the Action Button, previously a Pro-exclusive feature. Furthermore, a completely new “Camera Control” has been added to the right side, sitting below the power button—a spot previously occupied by the mmWave antenna, which has been relocated to the bottom left. This new control mimics a traditional camera shutter: a light press focuses the shot, while a full click captures the image.
The Software Divide: iOS 18.2 and Apple Intelligence
While the hardware changes are welcome, the true wedge between the iPhone 15 and 16 is software capability. With the release of iOS 18.2, Apple has rolled out a suite of advertised Apple Intelligence features, including Genmoji, the Image Playground app for AI generation, Image Wand, and Visual Intelligence. Crucially, these features are exclusive to the iPhone 16 lineup; the iPhone 15 does not support them and never will.
The update also brings ChatGPT integration to Siri, marking the first step in a broader overhaul of Apple’s virtual assistant. While iOS 18.2 lays the groundwork, more substantial changes are expected with iOS 18.3 and 18.4 in early 2025. These updates aim to transform Siri into a truly intelligent, conversational assistant, moving beyond simple command-and-response interactions.
The AI Strategy and Analyst Concerns
The push to revitalize Siri comes at a critical time. Despite Apple’s notorious secrecy regarding future projects, the company has faced mounting pressure to innovate in the AI space. Forrester analyst Dipanjan Chatterjee noted to Business Insider that many view AI as CEO Tim Cook’s “Achilles’ heel.” The criticism isn’t necessarily about a lack of ambition, but rather a deficit in execution.
Apple teased this more conversational future at WWDC 2024, showcasing a clip—since removed—where actress Bella Ramsey asked Siri to recall the name of a dinner companion. By analyzing context from texts and calendar entries, Siri successfully retrieved the information. This level of contextual awareness is what insiders and analysts expect to see fully realized as the company moves toward its 2026 roadmap.
Services Growth and What Lies Ahead
Beyond hardware and AI, Apple continues to quietly bolster its services division, which has seen steady growth over several earnings periods. On January 2, the company released updates to Apple Fitness+, introducing new workout programs, an “Artist Spotlight” series, and additions to the “Time to Walk” feature that blends storytelling with music.
As onlookers speculate about what 2026 holds, the pattern of Apple’s calendar remains the best indicator of its plans. Major product announcements will likely continue to anchor the Worldwide Developers Conference in June and the annual iPhone event in the fall, interspersed with iPad and Mac releases throughout the year. While the tech giant keeps its long-term cards close to its chest, the trajectory is clear: a convergence of updated hardware, aggressive AI integration, and an expanding services ecosystem.