Apple on Tuesday unveiled its slimmest iPhone to date, the iPhone Air, marking the biggest design update in years while keeping prices steady despite global economic pressures. The new smartphone, which measures only 5.6mm thick, features a single rear camera and is powered by Apple’s custom A19 chip, optimized for faster on-device artificial intelligence processing.
At a launch event in Cupertino, CEO Tim Cook described the iPhone Air as the “biggest leap ever for iPhone,” aimed at enticing customers who have been slow to upgrade their devices in recent years. The iPhone Air will start at $999 and goes on sale later this month alongside the iPhone 17 lineup, which will maintain prices similar to last year’s models, except for the iPhone 17 Pro, which will be about $100 more.
Apple’s decision to hold prices steady is seen as a strategic response to global economic sensitivities and disruptions caused by US tariffs. Despite a projected $1.1 billion cost due to supply chain challenges, the company is offering more storage at unchanged prices. Analysts from IDC noted that this approach reflects Apple’s understanding of consumer pressures, while Jefferies highlighted that pricing adjustments in China would allow Apple to benefit from government subsidies, strengthening its presence in the region.
The new iPhone Air also relies on virtual eSIM technology, eliminating the need for physical SIM cards, though the feature is awaiting regulatory approval in markets such as China. Apple’s AirPods Pro 3 was also introduced, offering real-time translation powered by “Apple Intelligence,” a feature leveraging large language models on users’ devices.
While artificial intelligence features were not a focal point of the event, the inclusion of the A19 chip signals Apple’s continued effort to integrate AI across its product line. Concerns remain over delays to Siri’s AI upgrade and recent departures of AI experts, but the company’s broader strategy emphasizes embedding AI into its hardware ecosystem.
Apple’s shares closed down about 1.5%, though investors remain cautiously optimistic following strong earnings earlier this year and regulatory relief on tariffs.
