Cupertino: Apple unveiled its iPhone 17 lineup on Tuesday, introducing its thinnest smartphone ever, as the tech giant navigates the competitive landscape of generative AI and tariff pressures. The launch event took place against a backdrop of increasing demands from the White House to lessen reliance on Chinese manufacturing and growing scrutiny from investors regarding Apple’s readiness for the AI era.
According to Lao News Agency, Apple is contending with challenges from President Donald Trump’s high tariff policies, resulting in a more than three per cent drop in the company’s shares since his inauguration. In response, Apple is banking on the iPhone 17 Air to catalyze a wave of new purchases and counteract the trend of prolonged device retention among customers.
“The event shows Apple sidestepping the heart of the AI arms race while positioning itself as a long-term innovator on the AI hardware front, with silicon and device-level integration,” remarked Emarketer analyst Gadjo Sevilla. Apple is aiming to rejuvenate its brand with the iPhone 17 Air, which CEO Tim Cook described as “a total game changer.”
The iPhone 17 Air, priced at $999, is only 5.6mm thick and features the new A19 Pro processor, touted as Apple’s most powerful iPhone chip yet. The device offers impressive battery life, promising up to 40 hours of video playback. This model complements the company’s standard lineup, including the high-end iPhone Pro 17.
While all new devices incorporate generative AI technology, Apple made no significant announcements regarding the expansion of its AI capabilities beyond updates to its “Apple Intelligence” suite. The tech giant’s AI initiative has struggled since the launch of “Apple Intelligence” last year, with users expressing dissatisfaction with the incremental improvements to Siri.
Reports suggest Apple plans to enhance AI integration into online search and revamp Siri, although these developments have not been officially confirmed. The company is also rumored to be collaborating with Google to leverage its search and AI expertise.
“For Apple to truly differentiate and outpace competitors, it must master AI as a new contextual user-interface,” noted Forrester analyst Thomas Husson. “This ambitious AI strategy will require time, potentially not coming to fruition until the iPhone’s 20th anniversary in 2027,” he added.
Industry analysts interpret the iPhone Air as a strategic shift for Apple, emphasizing ultra-thin design as a premium selling point rather than larger screens. This could lay the groundwork for a foldable iPhone, anticipated as early as next year, following the lead of Samsung and Huawei.
Despite the engineering challenges and increased production costs associated with creating such thin devices, Apple claims the iPhone 17 Air offers 24-hour battery life when fully charged. The company managed to maintain last year’s pricing levels for its iPhones, despite tariffs escalating production costs, a decision that might compress profit margins.
In July, Cook disclosed that Trump’s tariffs resulted in an $800 million impact on Apple last quarter, with an anticipated $1.1 billion this quarter. Following the pricing announcement, Apple shares dipped by 1.40 per cent, reflecting investor apprehension over sustaining profit margins.
In addition to the iPhone 17 Air, Apple launched the AirPods Pro 3, featuring improved noise cancellation and real-time translation, and the Apple Watch Series 11, which boasts 5G connectivity, extended battery life, and heart health monitoring features pending regulatory approval.