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Apple's latest generation of flagship smartphones is now powered by generative artificial intelligence as the company adopts the latest technology that is fast gaining traction. But it remains to be seen whether or not it will appeal to users.
Apple Intelligence on the new iPhone 16 series looks very promising: it can perform tasks you would associate with generative AI, aiding in productivity and creativity, within a tightly-controlled ecosystem that includes security measures to protect user privacy.
But with generative AI limited to a small segment of mostly high-end smartphones – Samsung's new Galaxy S and Z lines and Google's Pixel 9 series – it may take a while for consumers to appreciate what the technology can do for them.
Still, Apple has the tools to help the generative AI crusade gain traction. “Apple used its marketing genius and power of storytelling to drive the 'generative AI message' home to the average consumer,” Nabila Popal, a senior research director at the International Data Corporation, told The National.
True AI integration goes beyond enhancing existing features
Morey Haber,
BeyondTrust
“This is a long-term play for Apple, and while we may not see the bigger impact immediately, Apple Intelligence will eventually change the smartphone user experience completely, like with the first iPhone.”
Apple's rather belated entrance into generative AI comes after OpenAI's ChatGPT took off early last year. After its meteoric rise, Apple could have opted to develop and release something on last year's iPhone 15, but it stuck to its strategy of waiting out and studying the market before finally making a move with Apple Intelligence this year.
Generative AI
It was only a matter of time before generative AI came to smartphones. Samsung started it with the Galaxy S24, extending it to the Galaxy Z foldables. Google followed suit with the Pixel 9 last month. Now it's Apple's turn.
“It is precisely the new services related to AI that have aroused the most enthusiasm among consumers,” said Hani Abuagla, a senior market analyst at Dubai-based investment firm XTB Mena.
“Although it is not yet expected to be able to match other major tools, such as ChatGPT, with its new releases Apple will seek to demonstrate that it will also be a major player in generative AI.”
The generative AI-powered mobile market is projected to rise more than four times to capture an 18 per cent market share of the overall smartphone industry this year, the IDC said in a report last month.
Singapore-based research firm Canalys has a close prediction of 16 per cent this year – a figure expected to jump to 54 per cent of the market by 2028, when smartphone shipments are projected to pass 1.2 billion units.
For Apple to move the needle on how generative AI is perceived by consumers, it would have to raise awareness, said Nicole Peng, senior vice president at Canalys.
“The majority of consumers right now don't know what AI can do for them,” she told The National in Cupertino.
Apple's influence on the market may also convince developers to work more closely with them. The potential for the company to spruce up the technology, as well as its allure, may be a big opportunity for app makers.
“Developers should adopt [Apple Intelligence] as it is native to Apple's apps,” especially as the company has a huge install base for certain widely used services, Ms Peng said.
Software over hardware?
In the past, smartphone makers used to entice consumers with hardware upgrades, most notably with the camera, a tool that has become omnipresent and is a key selling point to users.
With the latest shift towards generative AI, will consumer preferences shift towards the software aspects of a device?
“The days of smartphone makers solely touting megapixel counts and processor speeds are over. Now, it's about how intelligently a device can enhance your life,” Andreas Hassellof, chief executive of Dubai-based technology firm Ombori, told The National.
Sid Bhatia, regional vice president at New York-based AI company Dataiku, argues that smartphone makers need to strike the right balance between hardware and software. This may be done by creating a “symbiotic relationship where hardware enables AI's potential and AI enhances the software’s functionality”, he said.
Generative AI also provides an opportunity for smartphone original equipment manufacturers to rethink their strategies in trying to appeal to more users. There will be more hardware innovations coming in the future, but for now, AI appears to be the name of the game, experts say.
“True AI integration goes beyond enhancing existing features. The technology is about transforming user experiences in ways that are intuitive, anticipatory and contextually aware, potentially without even using a screen and icons to interface with,” Morey Haber, chief security adviser at US cyber security company BeyondTrust, told The National.
“The real question is how mobile manufacturers will balance AI advancements with the hardware evolution that has historically driven consumer decisions, legal regulations and data privacy concerns.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
if you go
The flights
Fly to Rome with Etihad (www.etihad.ae) or Emirates (www.emirates.com) from Dh2,480 return including taxes. The flight takes six hours. Fly from Rome to Trapani with Ryanair (www.ryanair.com) from Dh420 return including taxes. The flight takes one hour 10 minutes.
The hotels
The author recommends the following hotels for this itinerary. In Trapani, Ai Lumi (www.ailumi.it); in Marsala, Viacolvento (www.viacolventomarsala.it); and in Marsala Del Vallo, the Meliaresort Dimore Storiche (www.meliaresort.it).
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Sunday's fixtures
- Bournemouth v Southampton, 5.30pm
- Manchester City v West Ham United, 8pm
INDIA SQUADS
India squad for third Test against Sri Lanka
Virat Kohli (capt), Murali Vijay, Lokesh Rahul, Shikhar Dhawan, Cheteshwar Pujara, Ajinkya Rahane, Rohit Sharma, Wriddhiman Saha, Ravichandran Ashwin, Ravindra Jadeja, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Vijay Shankar
India squad for ODI series against Sri Lanka
Rohit Sharma (capt), Shikhar Dhawan, Ajinkya Rahane, Shreyas Iyer, Manish Pandey, Kedar Jadhav, Dinesh Karthik, Mahendra Singh Dhoni, Hardik Pandya, Axar Patel, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah, Bhuvneshwar Kumar, Siddarth Kaul
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Company profile
Name: The Concept
Founders: Yadhushan Mahendran, Maria Sobh and Muhammad Rijal
Based: Abu Dhabi
Founded: 2017
Number of employees: 7
Sector: Aviation and space industry
Funding: $250,000
Future plans: Looking to raise $1 million investment to boost expansion and develop new products
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
