Apple unveils its new iPhone Air, AirPods with live translation, and Apple Watch with a blood pressure monitor. But will tariffs and competition impact its pricing strategy?
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| Apple’s iPhone Air, AirPods with live translation, and Watch with a blood pressure monitor reflect innovation, but tariffs and competition may challenge its market position. Image: Apple |
Tech Desk — September 12, 2025:
Apple’s annual product launch on Tuesday revealed a host of new devices, led by the ultra-slim iPhone Air, designed to revolutionize the smartphone market. The Air, coupled with new versions of the Apple Watch and AirPods, promises innovation in both tech and health. However, as tariffs and market competition intensify, Apple faces a set of challenges that could impact its pricing strategy and market share.
The highlight of the event was the iPhone Air, a sleek, high-performance device built with a brand-new A19 chip and a high-density battery. Apple’s CEO, Tim Cook, introduced the Air as “the most durable iPhone yet,” a title meant to differentiate it from the previous iPhone models. At a starting price of $999, the iPhone Air is positioned as a premium, slim device, competing with the likes of Samsung’s Galaxy S25 Edge.
One interesting angle to this release is its potential challenge to foldable phones, especially Samsung’s foldable Galaxy Z devices. Paolo Pescatore, an analyst at PP Foresight, noted that Apple’s new design could provide the “newness” that iPhones have lacked for years. This shift could play a pivotal role in Apple’s efforts to gain ground in markets like China, where foldables are favored.
Despite the excitement around the Air’s design, Apple’s most pressing concern may be how it handles the tariffs imposed by the US government on Chinese-made goods. Apple has long struggled with the geopolitical consequences of manufacturing in China, and analysts are wondering whether the iPhone Air and other models will see price increases due to these tariffs.
Apple’s new pricing strategy for the iPhone 17, priced at $799 for a 256GB version, reflects an interesting shift. It mirrors the previous iPhone 16’s base price but offers double the storage. While this could appeal to budget-conscious buyers, some experts speculate that the company might increase prices for higher-storage models or introduce new storage tiers to offset tariff costs, given the expected $1 billion hit to Apple’s bottom line.
The real question, however, is how Apple will manage its balance between maintaining competitive pricing while navigating the tariffs. With pressure from global trade issues, Apple might find it challenging to sustain low prices without cutting into its profit margins. As the US and China remain locked in trade disputes, Apple’s pricing strategy could play a pivotal role in how it competes both in the US and overseas.
Beyond the iPhone, Apple unveiled its next-generation AirPods Pro 3, featuring a real-time translation feature aimed at revolutionizing communication. This new technology will allow users to communicate across languages with ease, a significant step forward in wearable technology. At $249, the AirPods Pro 3 are priced similarly to their predecessor but offer a much more powerful AI-driven experience.
Similarly, the Apple Watch saw significant updates, particularly the addition of a blood pressure monitor feature. Pending regulatory approval, this feature could dramatically expand Apple’s foothold in the health tech industry. If successful, Apple’s Watch could help users track and manage blood pressure—a move that ties into the company’s broader focus on health monitoring, a field growing increasingly important as people seek more ways to manage their wellness.
However, while the health and AI features sound promising, the delay in upgrading Siri—Apple’s voice assistant—raises questions about the company’s overall commitment to artificial intelligence. With the company rumored to have partnered with OpenAI to enhance certain AI features, the absence of a major Siri update at this event suggests that Apple is treading carefully, possibly waiting for more AI developments before fully integrating them into its devices.
The looming issue of tariffs and trade policies remains a dominant factor in Apple’s future strategy. As the tech giant faces an estimated $1 billion cost from US tariffs on Chinese-manufactured goods, analysts are closely monitoring whether Apple will raise prices across its devices. Whether Apple maintains a steady pricing structure for its base models or chooses to increase the prices of higher-storage devices, the company’s pricing strategy will significantly affect its competitiveness in both domestic and international markets.
Moreover, the pressure from competitors, particularly Samsung with its foldable phones, will force Apple to accelerate innovation. The iPhone Air and its slim design may be a first step toward introducing foldable technology into the iPhone lineup, an area where Samsung has long been the market leader. Apple’s success in these areas will depend not just on the tech inside but on how well it can manage external factors like tariffs and trade barriers.
Apple’s new iPhone Air and health-tech innovations are undoubtedly game-changers, but the company’s ability to adapt to external pressures—from tariffs to market competition—will ultimately determine its future. While the iPhone Air and the new AirPods are impressive, the true test will be whether Apple can maintain its premium pricing while facing the realities of global trade, economic pressures, and competitive threats. As the company continues to navigate this complex landscape, its next moves will likely shape the tech industry for years to come.