Apple to Launch New iPhone Air Amid Trade Pressures and AI Anticipation

Apple is preparing to reveal its latest iPhone lineup, headlined by a slimmer iPhone Air model that is expected to slot between the more affordable iPhone 17 and the premium iPhone 17 Pro versions. The new Air model is anticipated to be a key highlight during Tuesday's event held at the company's Cupertino headquarters. Analysts suggest this device could pave the way for a folding iPhone in the near future, positioning Apple in direct competition with Samsung's Galaxy S25 Edge and its established foldable phone range now in its seventh generation.

The event will also showcase incremental updates to Apple Watches and other core product lines, with no significant changes expected to Apple's virtual assistant, Siri. Enhancements to Siri have reportedly been deferred until next year, although industry observers are keenly watching Apple's collaboration with OpenAI — the creator of ChatGPT — to integrate advanced artificial intelligence features into upcoming operating systems. There is speculation whether Apple might announce additional AI partnerships ahead of a Siri relaunch.

This launch comes amid ongoing global trade disruptions triggered by U.S. tariff policies, which Apple projects will cost the company over $1 billion during the current fiscal quarter. Market analysts are scrutinizing whether Apple will absorb these expenses by raising iPhone prices or adjust pricing strategies, such as maintaining base model costs while raising prices on higher-capacity variants.

The broader context includes recent moves by competitors like Alphabet, which recently introduced new smartphones, including a folding model that showcased its Gemini AI capabilities. Apple's upcoming announcement will reveal how it intends to maintain its competitive edge both in hardware innovation and AI-driven software enhancements.