SAN FRANCISCO: Apple unveiled its iPhone 17 lineup on Tuesday, featuring its thinnest smartphone ever, as the tech giant works to prove it can keep pace in the generative AI race.
Apple held its annual iPhone event amid pressures from the White House to reduce reliance on Chinese manufacturing, investor doubts about its AI readiness, and Trump’s high tariffs, which have contributed to a more than three percent drop in its shares since January.
Against this backdrop, Apple is betting on a product that it hopes will spark a super-cycle of iPhone purchases and reverse the trend of customers holding onto their devices longer before upgrading.
“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,” said Emarketer analyst Gadjo Sevilla.
To reinvigorate its brand, Apple introduced the iPhone 17 Air, which CEO Tim Cook called “a total game changer.”
At just 5.6mm thick (less than a quarter inch), the $999 device features Apple’s new A19 Pro processor, its most powerful iPhone chip to date, promises all-day battery life with up to 40 hours of video playback, and joins the company’s standard lineup alongside the premium iPhone Pro 17, its most expensive and highest-performing model.
While all new devices incorporate generative AI technology, Apple made no major announcements about expanding its AI capabilities beyond updates to existing features in its “Apple Intelligence” suite.
The company’s AI push has struggled to gain traction since launching “Apple Intelligence” late last year, with users particularly disappointed by Siri’s limited improvements despite years of promises.
Apple reportedly plans to integrate AI into online search next year and overhaul Siri, while also said to be partnering with Google to leverage its search and AI expertise, though the company has not confirmed these reports.
Industry analysts view the iPhone Air as a strategic pivot, with Apple positioning ultra-thin design rather than larger screens as its new premium selling point, while its super-slim profile could pave the way for the long-rumoured foldable iPhone expected as early as next year, competing with foldable models already offered by Samsung and China’s Huawei.
However, engineering such thin devices presents challenges: higher production costs and reduced battery space, though Apple claims 24-hour battery life for the iPhone 17 Air when fully charged.
Despite tariffs that increase production costs, Apple kept iPhone prices unchanged from last year’s models, a move that may squeeze profit margins, as Cook revealed in July that Trump’s tariffs cost the company $800 million last quarter with an estimated $1.1 billion impact expected this quarter.
Apple shares fell 1.40 percent after pricing details were announced, reflecting investor concerns about the company’s ability to maintain its profit margins.
Apple also introduced the AirPods Pro 3, featuring enhanced noise cancellation and real-time translation capabilities, along with the Apple Watch Series 11, which includes 5G connectivity, extended battery life, and heart health monitoring features pending regulatory approval. – AFP
