Even the iPhone is on Ozempic

How skinny Apple can make the iPhone has become one of the most highly watched metrics of technological progress in the world. But even a smaller bulge in your pocket wasn’t enough to wow investors.

The main character of Apple’s product launch event in Cupertino today was the new 5.6 mm iPhone 17 Air, which is roughly a third narrower than current models and priced at $999—$100 more than last year’s iPhone 16 Plus.

While the super skinny iPhone is certainly striking, the iPhone 17 Pro and and iPhone 17 Pro Max tout even more impressive features, including a totally new camera system and extended battery life. The premium models will be priced at $1,099 and $1,199, respectively.

What’s the big deal? “We expect this new model to have significant demand as it is the first notable redesign to the iPhone lineup in years,” wrote Wedbush analyst Dan Ives of the new iPhone Air. He estimates that roughly 315 million of the 1.5 billion iPhone users worldwide haven’t upgraded their iPhones in over four years, which he argues could spur on higher demand for its newest models.

But investors still pushed shares of Apple down 1.48%, partially because some were expecting higher price increases on the new iPhone models to offset the cost of tariffs.

Apple is playing catch up in the AI race

While Apple unveiled a slew of new products and features today, including major upgrades to AirPods and the Apple Watch, investors remain worried that the company doesn’t have the chops when it comes to artificial intelligence.

The company has been slower to roll out impressive AI tech than upstart rivals like OpenAI and even fellow Silicon Valley veterans like Microsoft. Earlier this year, Apple had to pull back on its revamped Siri voice assistant, complete with new Apple Intelligence technology, when it didn’t live up to the company’s technical standards. Meanwhile, competitors like Meta Platforms have poached some of its best AI talent, further delaying its AI ambitions.

All of that explains why Apple’s stock is down 6.42% this year, despite it beating top- and bottom line earnings expectations for its third quarter back in July.

AI may be a convenient acronym for Apple Intelligence, but the company isn’t synonymous with the new tech just yet. Today was more of what we got at its Worldwide Developers Conference in June—which is to say, not much at all.—LB