Apple on Monday announced a new iPhone built for generative artificial intelligence as it seeks to boost sales and show it is keeping up in the technology race.

The tech giant has a lot riding on what would be the iPhone 16 and will hope that customers are enticed to buy the latest models, attracted by new AI powers.

"We are thrilled to introduce the first iPhones designed from the ground up for Apple Intelligence and its breakthrough capabilities," Apple chief executive Tim Cook said at an event at the iPhone-maker's Silicon Valley headquarters.

With US$39 billion in sales last quarter, the iPhone counts for roughly 60 percent of Apple's revenue, and remains the main entryway to the company's services, such as the App Store or Apple TV, which are becoming a growing part of its business.

Apple is only just coming out of a long sales slump as users increasingly stick with older models longer.

"Apple Intelligence" is a new suite of software features for all devices that was announced in June at the company's annual developers conference.

"For years, artificial intelligence and machine learning have been essential in delivering so many of the features and experiences you love," Cook said.

"In June, we launched Apple Intelligence, our powerful new personal intelligence system, which will have an incredible impact."

However, Apple could be upstaged by a triple-folding smartphone unofficially released by China's Huawei hours earlier.

The Chinese tech giant's website showed that it had garnered more than 3 million pre-orders for its Z-shaped tri-fold, Mate XT phone. (AFP/Reuters)