Apple Unveils Slim iPhone Air Amidst AI Doubts

Apple launched its slimmest handset, the iPhone Air, on Tuesday, marking the largest design change in eight years. The company’s annual product launch event took place at its headquarters in Cupertino, California. CEO Tim Cook opened the event, referencing a quote from predecessor and design genius Steve Jobs: "For us, design goes beyond just how something looks or feels. Design is also how it works."

Credit: APPLE

The iPhone Air boasts a 5.6 mm slim frame, making it thinner than Samsung Electronics’ S25 Edge, which measures 5.8 mm. Its internal circuitry has been significantly reduced in size, which Apple states contributes to "all-day battery life."

Credit: APPLE

Analysts had anticipated a subdued reception before the event, but many were impressed by the new lineup. Four new iPhones were unveiled: the Air, 17, 17 Pro, and 17 Pro Max. This range is expected to appeal to customers with varied budgets.

Credit: APPLE

Morgan Stanley analysts noted, "We were more impressed with the look and capabilities of the Air than we expected to be and could see this being a device that helps to improve iPhone upgrade rates over the next 12 months." However, they also stated that the device, featuring an eSIM, would likely not sell well in China due to eSIM regulations there.

Apple shares fell more than 3% on Wednesday, as the company maintained its current prices. This worried investors about potential profit impacts from the Trump administration's tariffs. Doubts also persisted regarding whether the new smartphone would meet its claimed battery capacity.

Tuesday’s event provided little evidence of how Apple plans to bridge its artificial intelligence gap with rivals such as Google, which showcased its Gemini AI model in recent flagship phones. Thomas Hayes, chairman of Great Hill Capital, remarked that "Apple’s not really innovating and ... they’re still behind the eight ball on A.I. and the market is a little bit skeptical."

Apple's stock has stagnated, losing 6.4% this year before Wednesday’s losses. In contrast, other technology giants like Microsoft and Nvidia have reported double-digit gains. Apple’s market value of USD 3.5 trillion places it as the S&P 500’s third most valuable company, trailing those two companies.

Despite market concerns, fans and gadget experts at the event were enthusiastic about the iPhone Air. The device will feature Apple’s new A19 Pro processor chip, which is tuned for AI tasks, and two new custom communications chips. YouTuber Gaurav Chaudhary, with nearly 24 million followers, observed, "I heard loud claps the moment it was announced."

Chaudhary commended the Air’s titanium frame and ceramic shield glass, which Apple claims enhances the device's durability. He expressed his impressiveness despite prior leaks, though he remains keen to verify the battery life claim. The iPhone Air, which borrows its name and design language from the MacBook Air, may be what Apple fans have wanted for years: a device distinct from competitors and packed with feats of hardware engineering.

Paolo Pescatore, a PP Foresight analyst, said, "I think in an era where we’ve seen a large degree of sameness, it’s great to see Apple bring a new product to the market." He added that "It kind of reinvigorates the whole segment of iPhone." The iPhone Air includes only one camera, while the base iPhone 17 has two separate cameras, and the Pro models feature three.

Analysts predict the iPhone Air, in particular, will drive many upgrades, boosting Apple’s sales during the crucial holiday shopping season. Priced in the middle of the iPhone lineup, the Air is USD 100 less than the debut price of Samsung’s Galaxy S25 Edge. The Galaxy S25 Edge launched this year and shipped 1 million units in the second quarter, according to IDC.

Nabila Popal, senior research director with IDC’s Worldwide Quarterly Mobile Phone Tracker unit, believes the price will make it a strong seller. Popal stated, "Apple’s late, but when they do it, they do it bigger or louder or better than anyone."

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• Apple launched the iPhone Air, its slimmest handset at 5.6 mm, alongside three other new iPhone models.

• The iPhone Air features an A19 Pro chip tuned for AI tasks, a titanium frame, and ceramic shield glass.

• Analysts expressed concerns about Apple’s position in the AI race and the iPhone Air’s battery life claims.

Source: REUTERS