Apple Faces Headwinds Amid iPhone Upgrades and AI Concerns

Apple is set for a significant year ahead, with potential challenges including economic uncertainty, tariffs, and a growing trend of people holding onto their phones longer. However, the company may also see benefits from releasing thinner new iPhone Air models, which could convince fence-sitters to upgrade.

In addition to new iPhones, Apple will likely make standard updates across its line, featuring faster chips and enhanced cameras. Nevertheless, addressing AI-related issues remains a major concern for the tech giant.

According to Bloomberg, Apple is weighing various acquisitions to enhance its AI capabilities, including Perplexity and informal talks with Thinking Machines Lab. Meanwhile, experts note that improved hardware will be crucial in driving upgrades, even if more substantial progress on AI is made.

The company’s focus on developing smart glasses, which could potentially surpass the rectangular iPhone design, signals a shift towards new form factors to stay competitive in the tech landscape.

Source: https://www.axios.com/2025/06/23/iphone-16-apple-ai-hardware