Apple unveils iPhone air and new lineup, holds prices despite tariffs
Apple on Tuesday rolled out an upgraded slate of devices, led by the debut of a slimmer iPhone Air, while keeping prices steady despite U.S. President Donald Trump’s tariffs, which the company says could shave more than $1 billion off its quarterly profit.
The iPhone Air, priced from $999, features a high-density battery, a thinner design, and Apple’s new A19 Pro chip for greater performance and efficiency.
Chief Executive Tim Cook hailed it as “the biggest leap ever for iPhone,” calling it the most durable version yet.
Analysts had expected Apple might raise prices to offset tariff pressures, but the company instead kept price points flat, a move seen as an effort to protect demand in the face of competition from Samsung, Google, and fast-growing Chinese brands.
Alongside the iPhone Air, Apple introduced the iPhone 17 and iPhone 17 Pro, the latest iterations of its flagship series.
The base iPhone 17 will start at $799 for a 256GB model—double the storage of last year’s entry model at the same price.
The iPhone 17 Pro begins at $1,099 for 256GB, though Apple has dropped the cheaper $999 entry option available in the previous Pro lineup.
Other highlights included the third-generation AirPods Pro, featuring live translation for conversations, and a new Apple Watch with an integrated blood pressure monitor.
The watch’s health tool, pending regulatory approval, is projected to help notify up to one million users of hypertension risks across 150 countries.
Apple’s presentation also highlighted deeper investment in its proprietary chips. The iPhone Air will include a new N1 Wi-Fi chip and C1X modem for cellular connectivity, replacing parts traditionally supplied by Broadcom and Qualcomm, whose shares dipped following the announcement.
“This is MacBook Pro levels of compute in an iPhone,” said Tim Millet, one of Apple’s senior chip designers.
The Air will also eliminate the physical SIM slot, creating more room for battery capacity, and come equipped with two rear cameras.
The iPhone 17 meanwhile will sport a brighter, scratch-resistant display and an upgraded front camera optimized for horizontal selfies.
Despite the excitement, Apple’s shares closed down 1.6% after the event. Analysts attributed the dip to investor concerns about tariffs and slowing demand in China, where foldable smartphones have surged in popularity.
Industry watchers see the iPhone Air as Apple’s bid to rival Samsung’s Galaxy S25 Edge and build momentum toward an eventual foldable device, long considered key to regaining market share in Asia.
“This new device brings a sense of freshness to a line that has looked the same for too long,” said Paolo Pescatore, analyst at PP Foresight. “It puts Apple in a strong position to target different market segments.”
While competitors like Google continue to showcase AI-driven smartphones, Apple downplayed the race for software dominance, emphasizing instead its long-standing edge in custom silicon and tight integration between hardware and device-level intelligence.
As IDC’s Tom Mainelli put it: “Apple is using its scale to hold the line on prices. They know tariffs will hit consumers’ pockets, so keeping upgrades affordable is key.”
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