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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
An ‘iPhone Air,’ price hikes and AI: What to watch at Apple’s | |
biggest event of the year | |
By Lisa Eadicicco, CNN | |
Updated: | |
9:31 AM EDT, Mon September 8, 2025 | |
Source: CNN | |
The iPhone needs a shakeup. It could get one as soon as September 9, | |
when an all-new slimmer model of the iPhone, potentially called the | |
“iPhone Air,” alongside the iPhone 17 and new Apple Watch models at | |
its marquee annual event. | |
That kind of overhaul would be the first dramatic redesign of Apple’s | |
signature product since 2017, when Apple released the iPhone X, the | |
first model without the familiar home button and with Apple’s | |
now-ubiquitous Face ID technology. That shift set the stage for iPhone | |
generations to come. | |
But the iPhone Air, which will be announced at this year’s event, may | |
play a different role. Rather than setting the stage for the iPhone’s | |
future, an iPhone Air could add more variety to the iPhone lineup for | |
customers who want something different, analysts say. | |
Apple needs the help. While iPhone sales have been strong, as indicated | |
in July, consumers are only upgrading when they feel new features are | |
worth it — and that’s happening less often now, according to market | |
research firm Consumer Intelligence Research Partners. | |
And unlike Android rivals Samsung and Google, which have leaned into | |
artificial intelligence on their smartphone software, Apple | |
Intelligence is expected to take a back seat during Tuesday’s event, | |
even as perceptions continue that the company lags in AI. | |
Apple could also set to rest questions of whether tariffs will raise | |
iPhone prices. | |
But there’s a bigger question looming over all of this: Can Apple’s | |
blockbuster, 18-year-old product still excite consumers? | |
Apple did not immediately respond to CNN’s request for comment. | |
AI versus core functions | |
When Google unveiled the Pixel 10 lineup in August, pre-empting | |
Apple’s iPhone announcement, its Gemini assistant was front and | |
center. Rick Osterloh, Google’s senior vice president of platforms | |
and devices, kicked off the launch event with an overview of the | |
company’s vision for Gemini, claiming the digital helper can | |
“unlock so much helpfulness on your phone.” | |
One of the Pixel 10’s hallmark new features is which uses AI to | |
analyze what you’re doing on your phone and suggest the next action. | |
Samsung similarly touted the AI capabilities on the Galaxy S25 — its | |
flagship phone that competes with the iPhone — as a major selling | |
point when it unveiled the device in January. One such feature allows | |
users to do a multi-step task, such as looking up the schedule of a | |
sports team and adding it to their calendar, with one voice command. | |
But analysts say Apple is too behind in AI to take that approach. | |
Instead, it’s expected to focus more on hardware advancements than | |
AI. | |
Ted Mortonson, a technology strategist at Baird, said Apple’s AI | |
advancements likely aren’t ready yet, adding that the company is | |
under pressure to impress when it does deliver new AI tools or else it | |
could risk losing customers to Samsung and Google. | |
Earlier this year, Apple delayed a high-profile update that would have | |
enabled Siri to act across apps and answer questions about content on | |
your phone’s screen. The feature would have brought Siri up to speed | |
with more sophisticated AI agents like Google’s Gemini and OpenAI’s | |
ChatGPT. | |
Apple said it needed more time to bring the technology up to the | |
company’s “high quality bar.” | |
“Taking a step back, we see AI as one of the most profound | |
technologies of our lifetime,” CEO Tim Cook said in his opening | |
remarks during Apple’s July earnings call. “We are embedding it | |
across our devices and platforms and across the company. We are also | |
significantly growing our investments.” | |
Still, AI isn’t “compelling users to walk into stores to | |
upgrade,” Nabila Popal, a senior director with the International Data | |
Corporation’s (IDC) data and analytics team, previously told CNN via | |
email. And between an indicating that 95% of organizations are getting | |
no return on their AI investments and muted earnings from Nvidia, the | |
chipmaker at the center of the AI boom, there’s growing sentiment | |
that the AI gold rush may be overhyped. | |
But the iPhone is still one of the world’s most ubiquitous | |
smartphones, accounting for 15.7% of the global smartphone share — | |
just behind market leader Samsung, according to the . | |
Apple will likely lean into that advantage, choosing to focus on | |
improvements to the iPhone’s core functionality like battery life, | |
camera quality and design. And price will be top of mind; both Wall | |
Street and consumers will be watching to see whether tariffs have | |
impacted the new iPhone’s price. | |
Analysts from Morgan Stanley and Loop Capital believe price hikes could | |
be in store. The company could eliminate one of the lower storage | |
options for the iPhone 17 Pro to drive consumers to the pricier models, | |
a group of Morgan Stanley analysts led by Erik Woodring wrote in a | |
September 4 research note. This could help Apple offset the prices of | |
higher component costs, the report noted. | |
“Normally, it’s not a good sign for a launch event when the price | |
is the big focus, because then the product itself might not be as much | |
of a highlight compared to the previous generations,” said Runar | |
Bjørhovde, a research analyst for market research firm Canalys. | |
But President Donald Trump’s tariffs make this launch an exception, | |
since many will be watching to see whether Apple changes its pricing in | |
the United States and other markets. “How does Apple decide to play | |
that game?” Bjørhovde said. “Apple doesn’t like to change the | |
prices over time, so whatever is set from Day 1 is normally a key | |
indicator on what we will see for the next year.” | |
Apple’s struggles with iPhone models in different years | |
Apple has struggled in recent years to find a fourth iPhone model that | |
resonates as strongly as the standard, Pro and Pro Max. It removed the | |
iPhone Mini from its lineup after just two generations starting with | |
the iPhone 14, and now the company is expected to replace the Plus | |
model with this new Air. | |
But that may entail compromises like just one camera instead of the two | |
on the standard iPhone 16, according to . | |
The phone could be a tough sell for other reasons, too. Consumers and | |
are holding onto their smartphones , so a thin design may not be enough | |
to attract new buyers. Plus, Samsung has already gotten ahead of Apple | |
with a slimmer new phone called the Galaxy S25 Edge. | |
Still, Apple does have one advantage. | |
“The Air version of the MacBook has stuck. The Air version of the | |
iPad has stuck,” said Dipanjan Chatterjee, vice president and | |
principal analyst for market research firm Forrester. “So, there’s | |
good reason to believe that the Air version — a slimmer, thinner | |
iPhone — will.” | |
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