San Francisco, Sept 9 (V7N) – Apple Inc. (AAPL.O) is preparing to launch its latest iPhones on Tuesday, but analysts warn the company faces mounting pressure as rivals surge ahead in embedding artificial intelligence (AI) into their products and services.
 
This year’s most anticipated model could be a rumored “iPhone Air,” described as slimmer than any previous iPhone and borrowing its name from Apple’s lightweight MacBook Air laptop. Analysts say Apple must carefully balance design with functionality, particularly in fitting batteries and cameras into a thinner device. Pricing is expected to fall between the base iPhone 17 models and the higher-end Pro editions to attract mainstream buyers.
 
Dipanjan Chatterjee, vice president and principal analyst at Forrester, noted that a thinner iPhone could entice customers to upgrade. “It’s been a while since we have seen any meaningful update to the form factor of the device beyond tepid incremental changes, and the novelty of the Air will likely induce many 14, 15 and even 16 iPhone users to migrate up,” he said.
 
Analysts believe the iPhone Air could serve as a bridge to a foldable iPhone, which is not expected until next year. Samsung has already released seven generations of foldables, and Google is on its third. Despite this, foldables represent less than 2% of global phone sales and are unlikely to exceed 5% soon, Chatterjee added. However, a foldable iPhone may be key for Apple to regain ground in China, where foldables are popular and Apple’s market share has slipped.
 
Gene Munster, managing partner at Deepwater Asset Management, which holds Apple shares, said Apple historically earns nearly a quarter of its revenue from mid-range iPhones. He expects the company to quietly raise prices, possibly through higher storage tiers, rather than announcing direct increases. “They learned to play nice with Washington – a straight-up price increase might not come off well,” Munster said. “But I think they have rising costs, and they have been loyal to growing margins, and to do that, you have to find some method.”
 
Apple has also struggled to keep pace in AI. Improvements to Siri originally planned for last spring were delayed by engineering challenges, pushing the company to partner with OpenAI to integrate ChatGPT-based features. Reports suggest Apple is also exploring a deal to use Google’s Gemini AI models to strengthen Siri’s capabilities.
 
Ben Bajarin, CEO of Creative Strategies, said Apple will likely highlight the advanced AI processing power of its new Apple Silicon chips. These could eventually support an “agentic Siri” capable of autonomously handling tasks across the 2.35 billion Apple devices in use worldwide, without excessive battery drain.
 
Bob O’Donnell, president of TECHnalysis Research, cautioned that Apple’s timeline for catching up in AI is narrowing. “They have a huge share in the U.S., and most people are perfectly content,” he said. “But by this time next year, if Siri still underperforms and if they don’t deliver a foldable, I don’t know whether that contentment will continue.”
 
Apple’s product launch comes at a time when consumer expectations for innovation are rising sharply. With competitors advancing quickly in AI and foldable technology, Apple’s ability to deliver a compelling iPhone lineup in 2025 will be critical for maintaining its dominance in the global smartphone market.
 
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