The Silicon Valley powerhouse has remained tight-lipped about what is in store at an event dubbed "Awe Dropping" in invitations, but it comes at the time of year Apple typically introduces a new generation of iPhones that drive its revenue.
Despite iPhones maintaining their premium market position, Apple faces mounting pressure to prove it is keeping pace in the generative AI race.
"Apple's perception as being 'late to the AI party' presents a significant challenge," market tracker Canalys said in an analyst note.
While iPhone challengers powered by Google-backed Android have "aggressively advanced AI integration, Apple's slower rollout of first-party AI features has created adoption gaps," with people delaying new iPhone purchases, Canalys added.
Apple introduced its "Apple Intelligence" AI features late last year, but the features underwhelmed users -- particularly the long-awaited improvements to its Siri voice assistant, which remained disappointingly basic.
Looking ahead, Apple reportedly plans to integrate AI into online search next year alongside a Siri overhaul, though the company has not confirmed these reports. Apple is also reported to be partnering with Google to leverage its search and AI expertise.
"I will be surprised if there is a major announcement regarding Apple's AI strategy," Forrester analyst Thomas Husson said in a note.
"I am afraid that Apple's incremental innovation approach with the iPhone 17 will start reaching its limits - especially for those who are hungry for more innovation," he added.
Tuesday's main attraction should be the new iPhone models, headlined by an ultra-thin "Air" variant.
Most analysts view this as a strategic pivot -- Apple is positioning thinness, rather than screen size, as the new premium differentiator.
A super-thin iPhone could also lay the foundation for a foldable version of the smartphone, expected in the coming years.
But the engineering demands of thin phones can make them more costly to produce and shrink battery space.
Prices of the new iPhones in the United States are expected to climb as President Donald Trump's tariffs add to Apple's production costs. Since China remains Apple's primary production hub, these trade policies directly impact costs.
"Apple is navigating a delicate balance between its two largest markets - the US and China - amid rising trade tensions," Canalys said.
"A weaker US dollar now allows Apple to increase prices in the US while maintaining competitive pricing abroad."
The financial impact is already substantial: CEO Tim Cook disclosed that Trump's tariffs cost Apple $800 million last quarter, with an estimated $1.1 billion hit expected in the current quarter.
OpenAI backs AI-animated film for Cannes debut
New York (AFP) Sept 8, 2025 -
ChatGPT-maker OpenAI is backing the production of a feature-length animated film created largely with artificial intelligence tools, aiming to prove the technology can revolutionize Hollywood filmmaking with faster timelines and lower costs.
The movie, titled "Critterz," follows woodland creatures on an adventure after their village is disrupted by a stranger, with producers hoping to premiere at the Cannes Film Festival in May 2026 before a global theatrical release, they said in statement on Monday.
The project has a budget of under $30 million and a production timeline of just nine months -- a fraction of the typical $100-200 million cost and three-year development cycle for major animated features.
"Critterz" originated as a short film by Chad Nelson, a creative specialist at OpenAI, who began developing the concept three years ago using the company's DALL-E image generation tool.
Nelson has partnered with London-based Vertigo Films and Los Angeles studio Native Foreign to expand the project into a full-length feature.
"OpenAI can say what its tools do all day long, but it's much more impactful if someone does it," Nelson said in the news release. "That's a much better case study than me building a demo."
The production will blend AI technology with human work.
Artists will draw sketches that are fed into OpenAI's tools, including GPT-5 and image-generating models, while human actors will voice the characters.
The script was written by some of the same writers behind the successful "Paddington in Peru."
However the project comes amid intense legal battles between Hollywood studios and AI companies over intellectual property rights.
Major studios including Disney, Universal and Warner Bros. Discovery have filed copyright infringement lawsuits against AI firm Midjourney, alleging the company illegally trained its models on their characters.
The film is funded by Vertigo's Paris-based parent company, Federation Studios, with about 30 contributors sharing profits through a specialized compensation model.
Critterz will not be the first animated feature film made with generative AI.
In 2024, "DreadClub: Vampire's Verdict," considered the first AI animated feature film and made with a budget of $405, was released, as well as "Where the Robots Grow."
Those releases, as well as the original "Critterz" short film, received mixed reactions from viewers, with some critics questioning whether current AI technology can produce cinema-quality content that resonates emotionally with audiences.
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