Apple is set to hold its “Awe Dropping” event on Tuesday, where it is expected to unveil the new iPhone 17 lineup. While the company has kept details under wraps, analysts anticipate that enhanced artificial intelligence (AI) features will be a major focus. Apple faces increasing pressure to keep pace in the generative AI race, as competitors using Google’s Android have been more aggressive in integrating AI into their devices.

---

AI and the New iPhone 17

Apple’s new “Apple Intelligence” AI features, introduced late last year, have been criticized for being basic, particularly the improvements to its Siri voice assistant. Despite reports of a planned Siri overhaul and a potential partnership with Google to leverage its AI expertise, some analysts are skeptical of a major AI announcement at this event. However, the event’s main attraction is expected to be the new iPhone models, which will be headlined by a new ultra-thin “Air” variant. This move is seen as a strategic shift to position thinness as a new premium feature, and it could also lay the groundwork for a future foldable iPhone.

Economic and Market Considerations

The prices of the new iPhones are expected to increase in the United States due to President Donald Trump’s tariffs, which have added to Apple’s production costs in China. The article states that these tariffs cost Apple $800 million last quarter. However, a weaker U.S. dollar may allow Apple to increase prices in the U.S. while maintaining competitive pricing in other international markets. The company is currently navigating a delicate balance between its two largest markets, the U.S. and China, amidst rising trade tensions.