Apple Unveils iPhone Air, New Watch, AirPods; Holds Prices Amid Tariffs
- tech360.tv
- 2 days ago
- 3 min read
Apple unveiled an upgraded line of new iPhones on Tuesday, including the slimmer iPhone Air, keeping prices steady despite U.S. President Donald Trump’s tariffs. The iPhone Air, featuring a high-density battery and a new processor, will start at USD 999.
Chief Executive Officer Tim Cook heralded, "we're taking the biggest leap ever for iPhone," at the company’s annual product launch. Apple called the iPhone Air its most durable model, powered by the A19 Pro chip for energy efficiency and performance.
The iPhone Air’s price aligns with analyst predictions, placing it between Apple’s existing models. Apple also introduced the iPhone 17, iPhone 17 Pro, a new version of its AirPods Pro wireless headphones, and an Apple Watch featuring a blood pressure monitor.
The iPhone 17 base model, with 256 gigabytes of storage, will start at USD 799, matching the price of the previous iPhone 16 model which had half the storage. The iPhone 17 Pro begins at USD 1,099 for a 256-gigabyte version, retaining last year’s price for that storage, but without the iPhone 16 Pro’s lower-priced, smaller-capacity option.
Apple also kept prices consistent for its watch models and the new AirPods Pro 3.
This pricing strategy suggests Apple is absorbing tariff costs, aiming to compete with Samsung, Alphabet’s Google, and Chinese rivals. The company anticipates tariffs will cost over USD 1 billion in the current fiscal quarter.
Apple shares fell by 1.6% after the company announced its smartphone pricing. Tom Mainelli, head of IDC’s Device & Consumer Research Group, commented, "They're leveraging their scale to try to keep prices where they are."
Mainelli added that Apple, like most tech vendors, is "acutely aware, particularly in the U.S., that tariffs are going to impact consumers' ability to spend in the second half of this year." He said the company would "hold a line on prices and try to make it possible for people to upgrade between now and the end of the year at the same price as last year.”"
The iPhone Air will directly compete with Samsung Electronics’ Galaxy S25 Edge. Analysts suggest it could also be a step towards rivalling Samsung’s seventh-generation folding phones, which are popular in China where Apple has lost market share.
Paolo Pescatore, a PP Foresight analyst, remarked, "This new device will bring a sense of newness to the iPhone, which has remained the same for too long." Pescatore believes the "new and much-improved iPhone line-up looks impressive, which puts (Apple) in a strong position to cater for different segments."
Discussion at the event was limited on Apple’s strategy to narrow the gap with competitors like Google, which showcases Gemini AI models in its flagship phones. Apple has partnered with OpenAI, ChatGPT’s creator, for many AI features.
Gadjo Sevilla, an eMarketer analyst, stated that Apple sidestepped "the heart of the AI arms race while positioning itself as a longtime innovator on the AI hardware front, with silicon and device-level integration."
The iPhone Air will incorporate new "N1" and "C1X" chips for Wi-Fi and cellular data. Broadcom and Qualcomm, previous suppliers for these functions in Apple's premium devices, saw their shares fall by 2.3% and 1.1% on Tuesday afternoon.
Tim Millet, an Apple chip executive, described the iPhone Air’s power at the Cupertino, California, headquarters as, "This is MacBook Pro levels of compute, in an iPhone."
The iPhone Air will feature two cameras and will no longer include a physical SIM card slot, allowing for greater battery capacity.
The base model iPhone 17 will come with a brighter, more scratch-resistant screen. It also boasts an improved front-facing camera with a unique sensor shape, designed to enhance horizontal selfies.
The new AirPods Pro 3 will offer live language translation. Apple stated that if two people in a conversation both wear the new AirPods Pro 3, the earbuds will translate their dialogue in near real time.
Apple announced that the Apple Watch’s new blood pressure monitor feature is pending regulatory approval. While it will not detect every instance of high blood pressure, the company expects it to notify 1 million people and be available in 150 countries.
Apple introduced an upgraded line of iPhones, including the new iPhone Air, iPhone 17, and iPhone 17 Pro.
The company maintained prices for new iPhones, Apple Watch models, and AirPods Pro 3, absorbing tariff costs.
The iPhone Air features a new A19 Pro processor, a high-density battery, and dual cameras, while eliminating the physical SIM card slot.
Source: REUTERS