Apple Inc. (AAPL) Stock: Ultrathin iPhone Air Launch Could Spark Upgrade Frenzy

TLDR

Table of Contents

Apple will unveil iPhone 17 models on Tuesday, September 9, including a rumored ultrathin “iPhone Air” model
Wall Street expects modest iPhone sales growth of 2% in fiscal 2026 with revenue reaching $220 billion
Apple may raise prices by eliminating 128GB storage options, making 256GB the entry-level Pro model at $1,099
The company faces challenges catching up to rivals in AI integration, with Siri improvements delayed
New products expected include iPhone 17 series, Apple Watch models, and AirPods Pro 3

Apple prepares to showcase its latest iPhone lineup at Tuesday’s product event. The tech giant hopes new hardware will spark customer upgrades as it works to catch up in artificial intelligence.

The iPhone 17 series takes center stage at the September 9 event. Apple plans to introduce four new models including the standard iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max.

The iPhone 17 launches this month 🔥 pic.twitter.com/MrOnhjJVE6
— Apple Hub (@theapplehub) September 1, 2025

The biggest surprise could be a new iPhone 17 “Air” model. This ultrathin device would be Apple’s slimmest phone to date, borrowing the naming convention from the popular MacBook Air laptop.

The iPhone Air presents engineering challenges for Apple. The company must figure out how to fit batteries and cameras into a thinner design while maintaining performance standards.

Pricing strategy appears central to Apple’s upgrade plans. Morgan Stanley analyst Erik Woodring suggests the company may eliminate smaller storage options to effectively raise prices.

Apple could drop the 128-gigabyte storage model for iPhone Pro devices. This would make the 256GB version at $1,099 the new entry-level Pro model, representing a $100 price increase.

The iPhone generates roughly half of Apple’s total revenue. Wall Street expects iPhone sales to reach 232 million units in fiscal 2026, up just 2% from the previous year.

Revenue projections show iPhone sales hitting $220 billion in fiscal 2026. This represents a 5% increase from current levels, reflecting modest growth expectations.

Hardware Innovation vs Software Delays

The iPhone Air could serve as a stepping stone to future innovations. Analysts believe it may lead to a foldable iPhone and upgraded Siri capabilities, though neither is expected until next year.

Apple’s AI development has faced setbacks compared to rivals. The company initially planned Siri improvements for spring 2025 but delayed them due to engineering challenges.

Instead, Apple partnered with OpenAI to power AI features through ChatGPT integration. Google’s Pixel phones showcase their Gemini AI models more prominently than Apple’s current offerings.

Reports suggest Apple is exploring partnerships with Google’s Gemini AI to enhance Siri. This represents a shift from Apple’s typical preference for in-house development.

Market Position and Competition

Apple stock has declined 4.3% this year while the Nasdaq Composite gained 12%. Shares closed Friday at $239.69, down less than 0.1% for the session.

The company faces particular pressure in China where consumers favor foldable phones. Samsung is on its seventh generation of folding devices while Google offers its third-generation foldable.

Foldable phones represent less than 2% of total smartphone sales globally. Analysts don’t expect this segment to exceed 5% of the market anytime soon.

Apple’s next-generation Silicon chips may offer improved AI processing capabilities. These chips could eventually power more advanced Siri features without draining device batteries.

The event begins at 1 p.m. Eastern Time on Tuesday, with new Apple Watch models and AirPods Pro 3 also expected to debut.

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