Apple hints at price increases, second-generation iPhone Air may debut next spring, major adjustment expected in iPhone release schedule
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As the AI boom drives up the cost of storage chips, Apple is preparing to pass some of the cost pressure onto consumers. At the same time, the world’s most valuable consumer electronics company is accelerating its product line innovation: the second-generation ultra-thin iPhone Air has entered advanced testing and is planned for launch in spring 2027, aiming to boost appeal by upgrading its camera and battery life.
According to The Wall Street Journal on Wednesday, U.S. Eastern Time, Apple CEO Tim Cook told the newspaper that due to the continuing rise in memory and flash storage prices, it has become difficult for the company to fully absorb the costs, and future price increases are "inevitable." However, Apple has not yet decided on the exact timing, scale, or which products will be affected.
Also on Wednesday, Bloomberg’s Mark Gurman cited sources saying that Apple’s codenamed “V62” second-generation iPhone Air is now in the internal advanced testing stage and is expected to launch in spring 2027. This new model will maintain the current ultra-thin design, add an ultra-wide camera, and improve battery life. Apple is also adjusting the iPhone release schedule to distribute revenue more evenly and better respond to competition from Samsung and others.
AI Drives Up Storage Prices, Apple Rarely Admits Price Pressure
The Wall Street Journal reports that surging demand for AI servers is squeezing the supply of memory chips for the consumer electronics industry. Tech giants such as Microsoft, Google, and Amazon are scrambling to secure HBM and high-end DRAM chips, leading suppliers like Samsung, SK Hynix, and Micron to prioritize data center orders.
Cook said:
“This is one of the worst supply-demand imbalances I have seen in my forty years.”
He stated that Apple has enough cash to support the supply chain, but will not consider building its own memory chip factories.
According to estimates from TechInsights, the rising costs of memory and flash chips alone may increase the production cost of the next-generation high-end iPhone by more than $140 per unit. If Apple maintains current profit margins, product prices may be raised further for the next few generations.
Second-Gen iPhone Air Enters Advanced Testing: Dual Cameras Added, Battery Life Emphasized
Bloomberg reports that the second-generation iPhone Air, codenamed “V62,” is now in Apple’s internal advanced testing phase.
Sources revealed that one of the biggest changes is the addition of a second rear camera, upgrading from a single camera to a dual camera system with ultra-wide capabilities.
Within Apple, it's considered that the camera and battery life are the two areas needing the most improvement on the current Air model. The existing iPhone Air uses a single camera, which is one of the most frequent user complaints.
The new model will maintain the current ultra-thin look, but Apple is looking to boost battery performance. It’s not yet clear whether the battery improvement comes from a larger battery or more efficient chips, since the Air's slim design limits battery size.
The second-generation Air will be powered by a customized version of the A20 Pro chip, which will also be used in this fall’s iPhone 18 Pro series.
Apple Adjusts iPhone Release Timing: High-End in Fall, Standard Shifts to Spring
As part of Apple’s $210 billion iPhone business redesign, the Air series debuted in September 2025. Although its sales surpassed the previously lackluster mini and Plus models, it has not yet made it among Apple’s top-selling products.
According to sources, this is also why Apple can afford to slow the Air update cycle. There will be about an eighteen-month gap between the first and second-generation Air launches. However, the product timeline and final specs may still change, and Apple’s spokesperson declined to comment.
Meanwhile, Apple is making major changes to the iPhone launch schedule, which has been used for years.
In the past, Apple typically launched all major iPhone models at a single September event each year. But starting this year, the fall event will focus on high-end models only, launching:
- iPhone 18 Pro;
- iPhone 18 Pro Max;
- The first foldable iPhone.
About six months later, in spring 2027, Apple will launch the standard iPhone 18 and the upgraded second-generation iPhone Air.
Then, in fall 2027, Apple plans to launch two 20th Anniversary Edition iPhones and a second-generation foldable model. Bloomberg previously reported the Anniversary Edition will feature a four-edge curved screen, with display stretching to the phone’s edges.
Air Takes on Differentiation Role, Apple Targeting Balanced Annual Growth
The current $999 iPhone Air is one of the thinnest smartphones on the market, but its slim design means it can’t accommodate some of the components found in the Pro models, forcing compromises on camera and battery.
However, Apple believes internally that the Air series brings unique value to their product lineup.
John Ternus, Apple’s hardware chief set to replace Cook as CEO next year, previously said the Air series helps further differentiate Apple’s product lines. Not every user needs all the Pro features, but many still want a device that combines portability and design.
Bloomberg notes that Apple’s staggered release strategy not only helps balance revenue throughout the year, but also better competes with Samsung, which typically launches flagship products at multiple points in the year rather than focusing on a single quarter.
With the launch of the first foldable iPhone, the Anniversary edition, and ongoing Air upgrades, Apple is shifting from its traditional “once a year launch” model to a new cycle of continual updates. For this consumer electronics giant, as cost pressures rise in the AI era, maintaining growth through diversified product forms and more frequent launches is becoming the core strategy for iPhone’s development in the coming years.
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