Cupertino, California: Apple on Tuesday unveiled its new iPhone 17 lineup, introducing a slimmer iPhone Air, updated Pro models, and the most significant redesign of its operating system in over a decade. But the company also quietly made a major change to its storage pricing that could leave customers paying more.

Siri and the AI Gap

While Apple highlighted thinner designs, improved cameras, and a refreshed operating system, analysts said the company sidestepped growing concerns about its lag in artificial intelligence.

“Where is Siri?” asked Peter Andersen of Andersen Capital Management. “As AI continues to develop, Apple is standing in the background. The hardware looks great, but the elephant in the room is Siri.”

Futurum Group CEO Daniel Newman called the event “incremental,” adding that Apple hasn’t sparked a major upgrade cycle in four years despite touting AI features in 2023.

Storage Costs and Higher Prices

Apple also adjusted its pricing model in ways that may frustrate consumers. The iPhone 17 Pro now starts at $1,099, $100 more than last year, though it includes 256GB of storage. But storage upgrades now cost double: moving from 256GB to 512GB on the iPhone 17 Air is a $200 jump, compared to $100 previously. The top-tier iPhone 17 Pro Max with 2TB storage will cost $1,999.

iOS 26: A Fresh Look

Apple’s new operating system, shipping Monday, introduces a sweeping visual overhaul called “Liquid Glass.” Transparent menus and fluid animations replace static icons, creating Apple’s boldest redesign in over a decade. While visually striking, the update focuses more on aesthetics than on AI capabilities.

Hardware Tweaks

The iPhone 17 Air debuts as Apple’s first major redesign since the iPhone X, featuring a 5.6mm titanium frame and “all-day” battery life. The Pro models return to aluminum frames, sport 48MP triple rear cameras, and run on the new A19 Pro chip — capable, Apple says, of running large language models locally.

Investor Reaction

Despite the announcements, Apple’s stock dipped about 1.5% after the event. Analysts said the absence of major AI developments overshadowed the hardware refinements.

“Design has always been Apple’s strength,” said one Wall Street analyst. “But in an AI-driven market, Siri’s silence was louder than the launch itself.”