Apple Inc. on Tuesday unveiled its latest lineup of products, including the iPhone Air, iPhone 17, and iPhone 17 Pro, while keeping prices steady despite the financial strain of U.S. President Donald Trump’s tariffs.
The announcement came during Apple’s highly anticipated annual product launch event, where CEO Tim Cook described the new iPhone Air as “the biggest leap ever for iPhone.”
Apple Unveils iPhone Air With Slim Design and A19 Pro Chip
The iPhone Air was the highlight of the event. It comes with:
- A slimmer profile and high-density battery
- The A19 Pro processor chip, designed for better energy efficiency and performance
- A starting price of $999
Apple claims it is the most durable iPhone yet, with improvements that rival competitors like Samsung, which already markets ultra-thin smartphones.
iPhone 17 and iPhone 17 Pro Pricing Strategy
In addition to the iPhone Air, Apple introduced:
- iPhone 17: Priced at $799 for the 256GB model, double the storage of the previous iPhone 16 at the same price.
- iPhone 17 Pro: Starting at $1,099 for 256GB. Unlike last year, Apple eliminated the lower-capacity $999 option available in the iPhone 16 Pro.
This pricing strategy signals Apple’s commitment to offering more value for storage while keeping flagship devices at familiar price points.
Apple Expands Ecosystem With New Devices
Apple also rolled out updates to its broader ecosystem:
- Apple Watch with blood pressure monitoring
- AirPods Pro 3, the latest version of its popular wireless headphones
Notably, Apple chose not to raise prices on either its smartwatches or the new AirPods Pro.
Why Apple Is Holding Prices Steady
Analysts had speculated that Apple might increase smartphone prices to offset Trump’s tariffs, which are expected to cost the company over $1 billion this quarter. Instead, Apple opted to absorb the costs in order to stay competitive against:
- Samsung (KRX: 005930)
- Google (NASDAQ: GOOGL)
- Chinese smartphone makers
By keeping iPhone prices stable, Apple aims to maintain its market dominance despite rising operational costs.
Market Reaction
Despite the bold product announcements, Apple shares fell 1.6% following the pricing reveal. Investors had anticipated potential price hikes to offset tariff impacts, and the decision to absorb costs instead raised questions about future profit margins.
Conclusion
Apple’s decision to hold down iPhone prices amid Trump tariffs reflects a strategic move to protect its market share while delivering stronger devices with enhanced features. The iPhone Air, iPhone 17, and iPhone 17 Pro position Apple to compete aggressively against global rivals, even as tariffs weigh on its bottom line.
