Expected price hike to a lack of premium camera features - is Apple's iPhone 17 already facing headwinds?

Apple is preparing for the release of the iPhone 17 series, with the iPhone 17 Air set to debut as one of the most major changes to the iPhone family in recent years. While excitement is high, analysts caution that steeper prices, potential battery compromises, and softer demand in key markets could result in challenges.

Thinner Frame and Battery Performance

A slimmed-down version of the iPhone, the Air will bring some of the biggest changes to Apple’s most important product in years, according to Apple soothsayer Mark Gurman. It could also help boost iPhone sales in the near term.Apple’s iPhone Air is expected to be about 2 millimeters thinner than current iPhones, according to Gurman.

While the thinner body is likely to enhance portability, it may come at the price of battery size. A skinnier frame could also mean the iPhone Air will have a smaller battery, another strike against the smartphone, unless Apple can get more out of a charge through software improvements.

Pricing Pressure Ahead

Reports suggest that Apple is also widely anticipated to increase the costs of its devices, with projections ranging from a $50 to a $100 price hike on iPhone 17 Air, and a $50 jump on iPhone Pro and Pro Max models.

That would put the price of the iPhone 17 Air, which is set to replace the $899 iPhone Plus, between $949 and $999. The iPhone 17 Pro would now cost $1,049, while the Pro Max would be landing around at $1,249.

What Analysts Are Saying

Apart from the concerns about higher pricing and battery life, some analysts see an optimistic refresh cycle coming ahead. “The vast majority of sales, about 80% of sales, are going to be from people upgrading,” Deepwater Asset Management managing partner Gene Munster Munster cited to Yahoo Finance.

“And for them, it's largely not about what the features are in a given year, it's about what they were compared to the phone that they had, which is on average four years old. So they’re comparing it, in this case, it would be an iPhone 13 versus an iPhone 17,” he added.

However, not all analysts are equally optimistic. BofA Global Research analyst Wamsi Mohan struck a more cautious mention: “While prior form factor changes have driven a meaningfully higher next iPhone cycle, in our opinion, investor expectations for the benefit from a thin phone are more tempered,” Mohan wrote in an Aug. 25 investor projection. “We model iPhones growing 1% (year-over-year) in (fiscal 2026) (to 235mn units), which is mostly in-line with (Wall Street) at 233 (million),” he also added.

Global Market Conditions

Apple’s iPhone 17 introduction also comes at a challenging period for the global smartphone industry. “We had such a strong pull in demand; both Q1 and Q2 came in significantly above forecast,” described Nabila Popal, senior research director for IDC’s Worldwide Device Tracker.

As per Popal, smartphone sales in China, one of Apple’s most major markets are likely to slow in the second half of the year. Nevertheless, IDC projects global smartphone shipments to rise 1% year over year, with iOS device shipments anticipated to elevate by 3.9%.

FAQs:

Q1. When will the iPhone 17 be released?
Apple has not officially confirmed the release date yet, but the iPhone 17 lineup is anticipated to launch in 2025. The Air variant will replace the iPhone Plus model.

Q2. What makes the iPhone 17 Air different?
The iPhone 17 Air will be about 2mm slimmer than current models. It represents Apple’s boldest design modification in recent years.