Apple To Unveil iPhone 17 with AI Push Amid Rising Competition, Trade Tensions

Apple will unveil its iPhone 17 lineup on Tuesday at an event themed “Awe Dropping”, with artificial intelligence (AI) upgrades expected to headline the launch.

The tech giant has given little away about the new devices, but the event coincides with Apple’s annual iPhone reveal — a product line that remains its biggest revenue driver. Still, the company faces growing pressure to prove it can compete in the generative AI race.

“Apple’s perception as being ‘late to the AI party’ presents a significant challenge,” research firm Canalys noted, pointing out that Android rivals have moved faster with AI features, leading some users to delay iPhone purchases.

Apple rolled out “Apple Intelligence” features last year, but improvements to its Siri voice assistant disappointed many. Reports suggest Apple is working on deeper AI integration for search and a major Siri overhaul in 2026, potentially with Google’s support, though no confirmation has been given.

Analysts expect Tuesday’s main highlight to be an ultra-thin iPhone 17 Air, marking a shift from screen size to slimness as Apple’s premium differentiator. The design could pave the way for a foldable iPhone in the coming years, though slimmer devices often come with higher production costs and reduced battery capacity.

Prices are also expected to rise in the US, with former President Donald Trump’s tariffs adding to Apple’s China-based production costs. CEO Tim Cook has disclosed that tariffs shaved $800 million off profits last quarter, with losses projected to reach $1.1 billion this quarter.

“Apple is navigating a delicate balance between its two largest markets – the US and China – amid rising trade tensions,” Canalys observed, noting that a weaker dollar has given Apple room to raise US prices while keeping international prices stable.