In its most important announcement of the year, Apple released the latest version of the iPhone and other gadgets on Tuesday, trying to get consumers hyped in uncertain economic times.
Apple’s latest gadgets land as President Donald Trump’s trade wars squeeze the company’s bottom line.
The tech giant expects to take a $1.1 billion tariff-related hit, just this quarter, as consumers eye big-ticket purchases more carefully.
“It has to be worth it for someone to say, ‘OK, let me trade in my device and get a phone that costs more than $1,000,” said CNET senior technology reporter Abrar al-Heeti.
Apple’s recent offerings and sales have had ups and downs, al-Heeti said.
“This does feel like a really critical time for Apple to stand out. Whether it’s making its devices more powerful or rolling out something like a thinner iPhone. This is the time for it to say, we are still an innovative company, we are still on top of our game,” al-Heeti said.
In the tariff environment, Courtney Lindwall of Consumer Reports says their price tracking analysts have noticed tech companies overall taking a more conservative approach to new products.
“Companies are not putting out as many new models and those models maybe aren’t taking as many leaps forward with new features, innovation, so it just seems like in general there’s a bit more perhaps conservatism and like companies are waiting to see,” Lindwall said.
As consumers reason with the value of an upgrade.
“Making folks feel like there’s something worth it to go out and buy something exciting to go out and buy. I’m sure Apple is feeling that pressure,” Lindwall said.
The iPhone 17 starts at $799, and the newly announced iPhone air starts at $999.