Apple’s event will serve as a litmus test for the wider AI industry

But first, it’s time for a phone upgrade.

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The big story

A new phone awaits

It’s the time of year when leaves start changing colors, and people start changing iPhones (at least Apple hopes).

Apple’s “Glowtime” event is today, the latest iteration of the tech giant’s annual unveiling of its newest iPhone, writes Business Insider’s Jordan Hart.

Apple hasn’t given many official details about the event, which kicks off at 1 p.m. ET, but the tech giant is expected to showcase a bevy of new devices that include — you guessed it — AI features.

We’ll have a live blog going all day covering the event’s biggest announcements.

New AirPods and Apple Watches should make appearances, but the iPhone (we’re on version 16 now) will be the star of the show.

The iPhone has been Apple’s crown jewel for more than a decade, but it’s starting to run into an issue. People are keeping their iPhones a lot longer than they used to — proud owner of an iPhone 12 here — and that’s not good when a big part of your business is getting people to buy new iPhones.

Apple’s betting Apple Intelligence, its kinder, gentler take on AI, will be enough to convince people to finally crack and buy a new iPhone. See, you’ll need at least an iPhone 15 Pro to get the full benefits of Apple Intelligence.

The new iPhone could also go a long way in helping Apple turn things around in China, an important market it’s been struggling in, writes BI’s Hasan Chowdhury.

But early reviews of the type of AI features that’ll be initially offered – a souped-up Siri and email summaries — were less than stellar. Although, more cool stuff is expected to roll out next year.

The Apple event will also serve as a litmus test for the wider AI industry.

For the entire summer, one question has hung over the tech world: Is all this AI investment actually going to pay off?

Getting people to pay for AI-powered tools in business settings has been hit or miss. Even giants like Microsoft and Amazon have struggled to turn their big AI bets into revenue drivers.

But with Apple’s new iPhone, we’ll see if the general consumer is willing to shell out for having AI in their pocket.

Success could give the AI industry more confidence that there is a light at the end of the AI spending tunnel. After all, if people get comfortable paying for AI in their personal lives, that could translate to what they do at work.

But if the most recognizable tech company’s biggest product can’t convince people to pay for AI, that could spell trouble.

News brief

Top headlines

3 things in markets

1. God. Country. Nvidia. From Wall Streeters to the r/WallStreetBets-ers, everyone’s infatuated with the chip giant. The result is a kind of cult-like following of the stock that could be somewhat driven by people looking to scratch their gambling itch.
2. The latest jobs report crystalizes how tough the labor market is these days. August’s unemployment rate fell to 4.2%, but the US added only 142,000 jobs, which was below forecasts. It shows that while jobs are stable for current workers, it’s tough sledding finding a new gig.
3. The global population is getting older — and that’s not good for the stock market. JPMorgan strategists say this has historically led to declining returns, lower earnings growth, and weaker valuations. If the share of people over 65 increases 1%, returns will decline 0.92%, they estimate. But, there is one bright spot: healthcare spending.

3 things in tech

1. The female ‘founder mode’ paradox. Since Paul Graham’s essay on hands-on versus hands-off founders dropped, Silicon Valley split over the best approach to running a startup. But for female founders, that debate is a lot more complicated. They spoke about the double standard they’re held to.
2. All eyes on these AI startups. BI asked top VCs to name the most promising AI startups of 2024 so far. These 44 companies are revolutionizing sectors like fintech, healthcare, and logistics.
3. The Venn diagram of tech bros and history nerds might just be a circle. The hottest gift you can give a tech bro right now isn’t something new, but something old. Whether it’s a priceless painting or an original manuscript, high-earning tech workers really want to own a piece of the past no one else can have.

3 things in business

1. Have we girlbossed too close to the sun? Female execs feel especially trapped between the demands of career and home. But if they don’t cut back on work, how can they hope to achieve a better work-life balance? A self-help retreat for the battle-hardened girlboss might have the answer.
2. The adtech business could be on the brink of a major shake-up. The DOJ and 17 state attorneys general are taking Google to court in a landmark antitrust case. They’re alleging Google used acquisitions and ad auction tactics to build an illegal monopoly — and the trial’s outcome could be a boon for its rivals.
3. Middle managers are burnt out. The last few years have made middle managers’ jobs more toxic than ever, as they were largely targeted for layoffs or asked to do more with less. Some say the job isn’t worth it anymore — and are looking for a way out.

In other news

What’s happening today

• Oracle reports earnings.
• Brian Niccol officially becomes Starbucks chair and CEO. The former Chipotle leader succeeds Laxman Narasimhan, who stepped down last month.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.