iPhone requires a shakeup. It'll be available immediately on September 9th, when Apple is set to unveil an all-new slim model of the iPhone that could be called the “iPhone Air” alongside the iPhone 17 and new Apple Watch models at the Marqee Annual event.
This kind of overhaul is the first model without a familiar home button, and the first dramatic redesign of Apple's signature product since 2017, when Apple released its first model using Apple's current uniformity ID technology. That shift is set in the stage for the iPhone generation to come.
However, the iPhone Air, where Bloomberg reports are announced at this year's event, could play a different role. Rather than setting the stage for the future of the iPhone, the iPhone Air can add diversity to its iPhone lineup for customers who want something, analysts say.
Apple needs help. As Apple's latest revenue report showed in July, iPhone sales were strong, but consumers are only upgrading when they feel the new features are valuable.
And unlike Android's rivals, which are leaning towards artificial intelligence with their smartphone software, Apple Intelligence is expected to take the back seat during Tuesday's event.
Apple can also take a break from questions about whether tariffs will increase iPhone prices.
But there is a big question that looms in all of this. Can Apple's huge hit, 18-year-old product still excite consumers?
Apple did not immediately respond to CNN's request for comment.
When Google announced its Pixel 10 lineup in August, when it preceded the announcement of Apple's iPhone, its Gemini assistant was front and center. Rick Osterloh, senior vice president of Google's platforms and devices, launched the launch event with an overview of the company's vision for Gemini, claiming that digital helpers can “unleash extremely usefulness on your phone.”
One of the new features of Hallmark on the Pixel 10 is a tool called Magic Cue. This uses AI to analyze what you are doing on your phone and suggests the following actions:
Samsung similarly promoted the AI capabilities of its Galaxy S25, the flagship phone that competes with the iPhone, as a major selling point when it unveiled its device in January. One such feature allows users to perform multi-step tasks, such as examining sports team schedules and adding them to the calendar.
However, analysts say Apple is too slow to AI to take that approach. Instead, it is expected to focus on hardware advancements rather than AI.
Baird technology strategist Ted Mortonson said Apple's AI advances are likely not yet ready, adding that they are under the pressure to impress when offering new AI tools or risk losing customers to Samsung and Google.
Earlier this year, Apple delayed a high-profile update that allowed Siri to act on the app and answer questions about content on the phone screen. This feature would have made Siri faster along with more sophisticated AI agents like Google's Gemini and Openai's ChatGpt.
Apple said it would take more time to bring technology to the company's “high quality bar.”
“A step back, we consider AI to be one of the deepest technologies of our life,” CEO Tim Cook said in his opening remarks in Apple's July revenue call. “We embed it on devices and platforms, we embed it throughout the company. We're also making significant investments.”
Still, AI doesn't “force users to step into stores to upgrade.” NabilaPopal is Senior Director of the International Data Corporation (IDC) Data and Analytics Team, previously spoke to CNN via email. It also shows that among MIT research, 95% of organizations are not getting profits and reduced revenues from AI investments from Nvidia, a chipmaker at the heart of the AI boom.
However, the iPhone remains one of the most ubiquitous smartphones in the world, accounting for 15.7% of global smartphone share. This is right behind Samsung, the market leader, according to IDC.
Apple may choose to focus on improving the core iPhone features such as battery life, camera quality, and design, and may lean towards its benefits. And the price is the best thing to do. Both Wall Street and consumers are looking to see if tariffs have affected the prices of the new iPhone.
Analysts at Morgan Stanley and Loop Capital believe price increases will be in store. The company is able to eliminate one of the lower storage options on the iPhone 17 Pro, leading consumers to more expensive models. A group of Morgan Stanley analysts led by Erik Woodring wrote in a research note on September 4th. This could help Apple offset the price of increased component costs, the report says.
“Usually, when prices are a big focus, that's not a good indication of launch events, because the product itself may not be that highlight compared to the previous generation,” says Runar Bjørhovde, a research analyst at market research firm Canalys.
But President Donald Trump's tariffs make the launch an exception as many people are watching to see if Apple changes pricing in the US and other markets. “How did Apple decide to play that game?” Bjørhovde said. “As Apple doesn't like to change prices over time, what's set from day one is usually a key indicator of what you'll see next year.”
Apple has been struggling in recent years to find a fourth iPhone model that resonates as strongly as the standard, Pro and Pro Max. Just two generations after the iPhone 14 started, the iPhone Mini was removed from the lineup. Currently, the company is expected to replace the plus model with this new Air.
But, according to Bloomberg, it could involve a compromise like one camera instead of two cameras on the standard iPhone 16.
Phones can be tough sales for other reasons too. As consumers tighten their wallet strings and hold their smartphones for longer periods, a thin design may not be enough to attract new buyers. Plus, Samsung is already ahead of Apple with a slimmer new phone called the Galaxy S25 Edge.
Still, Apple has one advantage.
“The air version of my MacBook is stuck. The air version of my iPad is stuck,” said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester. “So there's a good reason to believe that the air version (the slimmer and thinner iPhone) will happen.”
