Apple unveils new operating system and AI capabilities

Apple on Monday unveiled expanded artificial-intelligence capabilities and a new design interface across all of its products, marking the tech giant’s latest round of updates as it aims to compete in the high-stakes AI race.

A fresh operating system called iOS 26 will deliver new user features such as real-time language translation in iMessages and image identification, Apple said at the Worldwide Developers Conference, or WWDC, hosted at the company's headquarters in Cupertino, California.

The operating system marks the first design update to be identified based on the year in which it will be released – in this case, iOS 26 – rather than the number of updates the company has issued for a given product. The new approach will allow the company to standardize its interface across products, Apple executives said.

The new operating system will provide “phone screening” for calls from unknown numbers, prompting such callers to provide their name and reason for calling before a user’s phone rings.

The design will also identify when a user has been put on hold, muting the music on the other end of the line and alerting a user when a human agent has picked up the call, according to executives.

The company also said that it would make additional artificial-intelligence capabilities available to developers, allowing them to create AI-fueled software for Apple products.

“We believe deeply in providing developers with the newest tools and technology to help them do their very best work,” Apple CEO Tim Cook said.

Prior to the announcement, some analysts cautioned that WWDC may lack a signature Apple product release, differentiating it from presentations at the event in recent years.

Last year, Apple unveiled at WWDC its artificial-intelligence capability called Apple Intelligence, heralding the long-awaited entry of the tech giant into AI.

In 2023, the company used the conference as an opportunity to launch Apple Vision Pro, a high-priced mixed reality headset that promises a personal movie theater wherever users go and screen navigation at the tap of a finger.

In its latest quarterly earnings report, Apple’s revenue exceeded Wall Street expectations, including sales of its iPhone, which ticked up 2% compared to the same period a year earlier. Mac sales jumped almost 7%, while iPad sales climbed 15%, the company said.

Since taking office, President Donald Trump has pressured Apple to shift production of its signature products to the United States. The company produces nine of every 10 smartphones in China.

Trump last month threatened 25% tariffs on Apple unless the company shifts iPhone manufacturing to the U.S., saying he disapproves of the company's decision to move part of its supply chain to India.

Apple said it expects tariff-related costs to total $900 billion in the current quarter. Speaking to analysts last month, Apple CEO Tim Cook said it's “very difficult” to forecast such expenses past June, since he’s “not sure what will happen with the tariffs.”