This article first appeared on GuruFocus.
Apple (NASDAQ:AAPL) is entering what could be its most important product cycle in years, with a multi-year roadmap designed to reinvigorate the iPhone franchise. At its September launch event, the company is expected to unveil the new iPhone Air a thinner, lighter model set to replace the iPhone 16 Plus positioning it as a premium option that trades battery life and a second rear camera for portability and design. Alongside it, the iPhone 17 lineup will debut, featuring modest hardware updates, refreshed camera systems, and a new orange finish for Pro models. Analysts note that while 2025 may bring incremental changes, the upcoming launches could set the stage for Apple’s larger transformation beginning in 2026 with the introduction of its first foldable iPhone, code-named V68, followed by a curved-glass iPhone 20 expected in 2027.
At the same time, Apple is accelerating efforts in artificial intelligence as it evaluates partnerships to strengthen Siri and related services. Discussions are ongoing with Google about customizing Gemini AI models to run on Apple’s secure servers, while Anthropic’s Claude is already being integrated into Apple’s developer tools. Apple is still weighing whether to continue relying on its in-house models or adopt external solutions, with management considering multiple scenarios as competition intensifies. Over the past two months, at least six senior AI executives and engineers have left Apple for Meta, reflecting heightened competition for talent as the industry pushes deeper into generative AI.
Apple’s services segment now generating roughly $100 billion annually remains a central focus as the company balances growth with regulatory challenges. Recent moves include raising the price of Apple TV+ from $9.99 to $12.99, launching AppleCare One at $20 per month, and preparing to roll out a paid Health+ subscription next year featuring AI-powered health coaching. However, analysts caution that regulatory scrutiny on the App Store and risks tied to Apple’s $20 billion annual search deal with Google could affect as much as 40% of services revenue. Taken together, Apple’s upcoming iPhone redesigns, AI strategy, and evolving services model point to a period of transition that could reshape its competitive position over the next several years.