By Angela Palumbo

Apple introduced the newest iPad Air on Tuesday, but didn't raise the price from its predecessor as tariffs spook consumers and markets.

The new iPad Air comes with an M3 chip built for artificial intelligence. The company said the new device will do everything faster -- including content creation and gaming -- thanks to the M3 chip.

It is available for preorder on Tuesday and will be in stores on March 12.

Apple also said it is releasing a new Magic Keyboard for the iPad Air, which has a larger built-in trackpad.

"For everyone from college students taking notes with Apple Pencil Pro, to travelers and content creators who need powerful productivity on the go, iPad Air with M3, Apple Intelligence, and the new Magic Keyboard take versatility and value to the next level," said Bob Borchers, vice president of Worldwide Product Marketing at Apple.

The "value" part of the launch refers to the iPad's pricing. The 11-inch model will start at $599 while the 13-inch will start at $799. That's the same price the company was charging for the iPad Air with the M2 chips.

U.S. consumers are worried about price increases in all sectors due to tariffs implemented by the Trump administration. The Conference Board's consumer confidence index had its largest monthly decline in February since August 2021.

Apple isn't exempt from tariffs this time around, so the levies put into effect on Tuesday could lead to higher prices from the iPhone maker. That makes the pricing decision on the latest iPad Air noteworthy.

Shares of Apple were up 0.3% Tuesday to $238.71 while the S&P 500 index dropped 1.4%.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 04, 2025 12:56 ET (17:56 GMT)

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