TLDRs;
- Apple stock fell 0.79% to $236 as investors await the iPhone Air debut and new AI features.
- The iPhone Air is rumored to be thinner, targeting consumers between base and Pro models.
- Apple is developing upgraded AI for Siri and exploring Google Gemini integration to catch up with rivals.
- Analysts say Apple’s balance between privacy and AI innovation is crucial to its future growth.
Apple Inc. ($AAPL) shares slipped 0.79% to $236 on Monday, as investors took a cautious stance ahead of the company’s highly anticipated September 9 product event.
The decline comes as analysts highlight the rumored launch of a slimmer “iPhone Air” and renewed focus on artificial intelligence upgrades, both of which could shape Apple’s trajectory in the competitive smartphone market.
Slimmer iPhone Air rumored to debut
The iPhone Air is expected to occupy a middle ground between Apple’s standard iPhone 17 and the Pro lineup, offering a thinner and more stylish option for consumers. Analysts say a major shift in design could spur upgrades from users who have held onto older models.
However, a foldable iPhone is not expected until 2026, leaving Apple behind rivals like Samsung and Google, who already have multiple foldable devices on the market.
Still, foldable phones represent only a niche portion of global shipments, accounting for less than 2% of sales in 2024. Analysts project that share may rise modestly to 5% in coming years. Apple’s strategy of arriving late but redefining categories, as it did with smartphones in 2007, suggests its eventual entry into foldables could be industry-shaping.
AI features move into spotlight
Beyond hardware, Apple is sharpening its focus on AI. The company is said to be working on an improved version of Siri that integrates generative AI tools, capable of summarizing notifications and boosting productivity. Reports also suggest Apple is in talks with Google to incorporate its Gemini AI model into iOS, a move that would signal Apple’s urgency in catching up to rivals.
Competitors such as Samsung are already marketing advanced AI-driven features like creative photo editing in their Galaxy S25 Ultra devices. Meanwhile, Apple’s privacy-first approach, which prioritizes on-device AI processing, has slowed its rollout of more advanced tools.
Industry watchers believe Apple must strike a balance between safeguarding user data and delivering cutting-edge AI performance to maintain its global standing, particularly in China, where competition is intensifying.
Market context and investor sentiment
Apple’s current dip follows a five-day trading range where shares peaked above $240 before sliding back amid broader tech market volatility. At a market capitalization of $3.5 trillion, Apple remains the world’s most valuable company, but pressure is mounting for new growth drivers.
The upcoming launch event is seen as a critical moment to reassure investors that Apple can still inspire consumer demand with design innovation while bridging the AI gap. Many analysts argue that Apple’s ability to combine hardware excellence with AI breakthroughs will determine whether it can sustain its dominance in the next phase of the smartphone market.
