Apple will unveil its iPhone 17 lineup on Tuesday, with synthetic intelligence (AI) anticipated to be the headline characteristic as the corporate battles rising scrutiny over its innovation tempo and rising manufacturing prices.
The occasion, tagged “Awe Dropping” in official invites, got here at Apple’s conventional launch window for brand spanking new iPhones, the corporate’s most necessary income driver. But, whereas iPhones stay a premium staple within the world smartphone market, analysts say Apple faces mounting stress to show it may possibly sustain with rivals within the generative AI race.
“Apple’s notion as being ‘late to the AI social gathering’ presents a big problem,” market tracker Canalys famous in an analyst briefing. “Whereas iPhone challengers powered by Google-backed Android have aggressively superior AI integration, Apple’s slower rollout of first-party AI options has created adoption gaps, with individuals delaying new iPhone purchases.”
Apple launched its “Apple Intelligence” AI options late 2024, however fell in need of expectations. The largest disappointment, analysts stated, was Siri, which many customers hoped would obtain a serious overhaul however remained primary in its performance.
Experiences recommend Apple is getting ready a deeper integration of AI into its merchandise, together with a revamped Siri and a push into on-line search subsequent yr, doubtlessly by a partnership with Google. Nevertheless, expectations stay tempered.
“I shall be shocked if there’s a main announcement concerning Apple’s AI technique,” stated Forrester analyst Thomas Husson. “I’m afraid that Apple’s incremental innovation method with the iPhone 17 will begin reaching its limits – particularly for many who are hungry for extra innovation.”
This yr’s highlight is prone to be on {hardware} design. Business watchers count on the iPhone 17 to debut an ultra-thin “Air” variant, signaling a strategic shift from display screen measurement to slimness as the brand new premium differentiator. Analysts recommend such a design may additionally function a precursor to a foldable iPhone within the coming years.
However thinness comes at a worth. Engineering trade-offs typically scale back battery area whereas rising manufacturing prices — challenges Apple should navigate rigorously, particularly beneath present world headwinds.
In the USA, costs of the brand new iPhones are projected to rise as tariffs imposed by President Donald Trump add to Apple’s manufacturing bills. China stays Apple’s major manufacturing hub, making the corporate notably weak to shifting commerce insurance policies.
“Apple is navigating a fragile steadiness between its two largest markets – the US and China – amid rising commerce tensions,” Canalys noticed. “A weaker US greenback now permits Apple to extend costs within the US whereas sustaining aggressive pricing overseas.”
CEO Tim Prepare dinner lately confirmed the monetary toll. In keeping with him, Trump’s tariffs price Apple $800 million final quarter, with an estimated $1.1 billion hit anticipated within the present quarter.
