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Apple Plans Three-Year iPhone Overhaul to Counter AI Competition
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Apple is preparing a significant three-year overhaul of the iPhone, responding to increasing pressure from competitors like Google who are rapidly integrating artificial intelligence (AI) into their smartphones.
The Road Ahead: iPhone Air, Foldable, and a curved Future
Following a period of incremental upgrades, Apple is poised for a more dramatic shift in its flagship product. According to a report by Bloomberg News, the company’s strategy centers around three key releases over the next three years.
First up, next month will see the introduction of the iPhone Air
, a thinner model designed to supersede the iPhone 16 plus. This will be followed in 2026 by Apple’s first foray into the foldable phone market. This highly anticipated device is expected to boast an impressive five-camera system and, mirroring a trend towards streamlined design, will likely omit a SIM card slot.
The culmination of this overhaul is slated for 2027, coinciding with the iPhone’s 20th anniversary. The iPhone 20
promises a radical aesthetic departure,featuring curved glass edges all around – a significant change from the squared-off design Apple has favored for the past five years.
As Bloomberg’s Mark Gurman succinctly put it, 2025 won’t be a revolutionary year for the iPhone, but it will lay the foundation for major shifts in 2026 and 2027, making it an exciting time for iPhone fans.
The AI Pressure cooker
This strategic shift comes as Apple finds itself playing catch-up in the burgeoning field of AI. Recent commentary from industry analysts highlights the growing concern that Apple is lagging behind Google in integrating AI features into its smartphones.
Nicole Nguyen of The Wall Street Journal recently argued that Google’s Pixel phones are setting a new standard with AI-powered capabilities such as proactive information surfacing,real-time voice cloning for translations,and advanced photo assistance. The upcoming Pixel 10 is expected to further solidify Google’s lead.
PYMNTS CEO Karen Webster has warned that Apple risks turning the iPhone into a commodity if it doesn’t rapidly adopt native AI experiences. The Pixel 9 and 10’s embedded AI allows users to seamlessly interact with the device through voice, search, transactions, and navigation. Apple can’t match that today,
Webster stated, and the risk is how many consumers will keep waiting around for Apple to deliver.
Internal Challenges and the Siri Comeback
Apple’s AI ambitions haven’t been without hurdles. The company has faced investor impatience, the departure of key AI talent, and delays in updating its Siri virtual assistant.These challenges underscore the complexity of integrating AI into Apple’s tightly controlled ecosystem.
However, Apple is actively working to address these issues.Reports indicate the company is preparing a major Siri redesign powered by large language models, perhaps arriving on iPhones and iPads as early as next year. This represents a crucial step in Apple’s effort to regain its footing in the AI race.
iPhone Trends and Future Insights
The smartphone market is undergoing a period of significant conversion, driven by advancements in AI and evolving consumer preferences. The move towards foldable phones, as exemplified by Apple’s planned 2026 release, represents a key trend. Similarly, the increasing emphasis on AI-powered features is reshaping the user experience, moving beyond simple voice assistants to proactive, personalized interactions.
Apple’s strategy suggests a recognition that incremental improvements are no longer sufficient to maintain market leadership. The three-year overhaul signals a willingness to embrace more radical changes in both hardware and software, positioning the iPhone for continued relevance in a rapidly evolving landscape.
