Apple on Tuesday unveiled the iPhone 17 lineup, headlined by the iPhone 17 Air — the company’s thinnest smartphone ever — as it seeks to reassert its innovation edge and prove it can stay competitive in the rapidly evolving AI era.
The product reveal came during Apple’s annual fall launch event, held under growing scrutiny. The White House is pressuring the tech giant to cut reliance on Chinese manufacturing, while investors continue to question Apple’s readiness for a future defined by generative AI.
Compounding these concerns are escalating trade tensions. Since President Donald Trump’s return to office in January, high tariffs have created new cost burdens for Apple. The company revealed in July that the tariffs cost it $800 million last quarter, with a projected $1.1 billion impact this quarter. Apple shares have declined more than 3% since Trump took office, and fell another 1.4% following Tuesday’s pricing announcements.
Amid these headwinds, Apple is betting on hardware — particularly design — to drive a new wave of consumer upgrades. CEO Tim Cook introduced the iPhone 17 Air as a “total game changer.” At just 5.6mm thick (less than a quarter inch), the ultra-slim device features Apple’s most advanced chip yet, the A19 Pro, and boasts up to 40 hours of video playback on a single charge. The Air will retail for $999. It joins the broader iPhone 17 lineup, including the iPhone 17 Pro, Apple’s most powerful and expensive model to date.
Analysts say the Air marks a clear shift in Apple’s premium strategy — moving from larger screens to thinner form factors as the defining feature of high-end iPhones. The super-slim design also hints at Apple’s long-rumored foldable iPhone, which some expect as early as next year. Rivals like Samsung and Huawei already offer foldable models.
However, Apple’s push for ultra-thinness doesn’t come without trade-offs. Engineering slimmer phones typically reduces battery capacity and increases production costs. Still, Apple claims the Air will offer 24 hours of battery life under normal use. Despite rising manufacturing costs due to tariffs, Apple kept pricing steady across the iPhone 17 range — a decision that could pressure margins and spooked some investors.
While Apple says all new devices incorporate generative AI features, the company made no major AI announcements beyond modest updates to its existing Apple Intelligence suite — a rollout that has so far underwhelmed both users and analysts. “Apple is sidestepping the center of the AI arms race while positioning itself as a long-term player on the hardware side, with a focus on silicon and device-level integration,” said Emarketer analyst Gadjo Sevilla.
Since launching Apple Intelligence in late 2024, the company has faced criticism over its lack of visible progress — especially regarding Siri, which remains limited in functionality compared to newer AI assistants. Reports suggest Apple is planning a major Siri overhaul and deeper AI integration into search by 2026, possibly in partnership with Google, but the company has not confirmed these plans.
“To truly differentiate and smoke the competition, Apple will need to crack AI as a new contextual user interface,” said Forrester analyst Thomas Husson. “But executing that vision will take time — likely not before the iPhone’s 20th anniversary in 2027.”
In addition to the iPhone 17 lineup, Apple also introduced several new products. The AirPods Pro 3 offer improved noise cancellation and real-time translation capabilities, while the Apple Watch Series 11 now includes 5G connectivity, extended battery life, and advanced heart monitoring — pending regulatory approval.
While the spotlight remained on the iPhone 17 Air, Apple’s cautious approach to AI continues to raise questions about how it plans to compete in a world increasingly dominated by generative technologies.
