Apple is poised to reveal its iPhone 17 series, with improved artificial intelligence capabilities anticipated to be the main highlight. The Silicon Valley giant has stayed mum about what to expect at an event called "Awe Dropping" in invitations, yet it coincides with the period when Apple usually unveils a new line of iPhones that boost its earnings.

Although iPhones hold a strong position in the premium market, Apple is under increasing pressure to demonstrate its progress in the generative AI sector.

"Apple's image as being 'behind on AI' poses a major challenge," market analyst Canalys noted in a report.

Canalys stated that "iPhone competitors driven by Google-supported Android have rapidly enhanced AI integration, while Apple's gradual introduction of its own AI features has resulted in adoption disparities, causing consumers to postpone new iPhone acquisitions.

Apple launched its "Apple Intelligence" AI features late last year, yet the functionality disappointed users—especially the anticipated enhancements to its Siri voice assistant, which remained frustratingly simple.

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Apple is said to be preparing to incorporate AI into online search next year along with a revamp of Siri, although the company has not verified these claims. Apple is said to be collaborating with Google to utilize its search and AI knowledge.

"Forrester analyst Thomas Husson mentioned in a note that he would be amazed if there is a significant announcement concerning Apple's AI strategy."

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"I fear that Apple's incremental innovation strategy with the iPhone 17 will begin to hit its boundaries - particularly for those eager for more innovation," he mentioned.

Many analysts see this as a strategic shift -- Apple is emphasizing thinness, instead of screen size, as the new premium distinction.

An ultra-slim iPhone might also pave the way for a foldable variant of the smartphone, anticipated in the next few years.

 

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However, the engineering requirements for slim phones can increase production costs and reduce battery size.

The costs of the latest iPhones in the United States are anticipated to rise due to President Donald Trump's tariffs increasing Apple's manufacturing expenses. As China continues to be Apple's main production center, these trade policies have a direct effect on expenses.