Apple is expected to unveil the iPhone 17 series on Tuesday during its “Awe Dropping” event, with the spotlight on artificial intelligence enhancements and a new ultra-thin model expected to be called iPhone Air.
The tech giant has remained quiet about specifics ahead of the event, but analysts say Apple is under pressure to deliver as competitors rapidly advance in the AI space.
“Apple’s image of being ‘late to the AI party’ is becoming a major concern,” said Canalys in a market note.
While Android-based rivals have integrated AI more aggressively, Apple’s “Apple Intelligence” suite, introduced late last year, received lukewarm reviews.
Critics say improvements to Siri remain minimal and broader AI capabilities are still lagging behind.
Apple is reportedly working on deeper integration of AI into its search tools and voice assistant, with larger rollouts expected in 2026. Unconfirmed reports suggest Apple may be collaborating with Google to boost AI functionality.
“If Apple doesn’t announce a more ambitious AI strategy soon, they risk losing ground,” said Forrester analyst Thomas Husson.
The main hardware reveal is likely to be the ultra-slim iPhone Air, as Apple shifts its premium appeal from screen size to design minimalism.
Analysts see this move as laying the groundwork for a future foldable iPhone.
However, thinner models often come with engineering trade-offs including higher production costs and reduced battery space.
With production still centered in China, Apple is grappling with the impact of renewed U.S.-China trade tensions under President Donald Trump’s administration.
According to Apple CEO Tim Cook, tariffs cost the company $800 million in the previous quarter, with losses projected to reach $1.1 billion this quarter.
To offset this, Apple may raise iPhone prices in the U.S, while keeping international pricing competitive due to a weaker dollar.
