Anyone considering upgrading their smartphone may have an interesting new option in the fairly near future.
Most people remember January 9, 2007, the now iconic day when former Apple (AAPL) CEO Steve Jobs unveiled a new device called the iPhone. Many people watching the address he gave likely didn’t grasp just how much the tiny device he held would quickly change an entire industry.
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Almost two decades later, Apple’s iPhone has undergone many changes and become the most popular smartphone in the United States and many other nations. But now it seems that a new device is coming, and it may disrupt the market just as much as the first iPhone did.
Leading tech companies like Apple and Google (GOOGL) have introduced artificial intelligence (AI) into their technology for years. However, two much lesser-known firms are teaming up to roll out what they describe as the market’s first AI phone.
The mobile phone market may be nearing a moment comparable to unveiling of the iPhone by former Apple CEO Steve Jobs.
Justin Sullivan/Getty Images
Is the smartphone market nearest its AI Phone moment?
The original iPhone unveiling has become so iconic in the business and tech worlds that the phrase ” iPhone moment” now symbolizes an important event. It seems that it may be replaced by a new term: “AI Phone moment.”
Germany’s Deutsche Telekom, the parent company of T-Mobile (TMUS) , is getting ready to roll out what it describes as an “AI Phone,” a handset powered by a Perplexity chatbot and a virtual assistant called Magenta AI. It discussed plans for this new device at the recent Mobile World Conference (MCW) after first revealing the idea one year ago on the same stage.
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While other smartphones offer more and more AI features, the AI phone will reportedly allow users to perform necessary functions without consistently switching between apps. Claudia Nemat, a member of the Board of Management for Technology and Innovation at Deutsche Telekom, recently issued the following statement on the new device:
“The trusted AI companion, our AI Phone, will help you in many situations: find reliable answers concerning the source. Conveniently book a restaurant or taxi. Let an AI assistant do your shopping. All without having to switch between apps. Intuitively and preferably by voice.”
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She describes this important step for mobile phone technology as the future of AI innovation for electronics consumers. While Nemat also notes that Deutsche Telekom is “becoming an AI company,” she adds that it is not building foundational large language models (LLMs).
What to know about the upcoming AI phone
According to TechCrunch, the AI phone will be unveiled by the second half of 2025 and will be available for purchase in 2026 for less than $1,000. However, it will likely initially target European markets, and there is no clear indication of when it will reach the U.S.
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Multiple Deutsche Telekom leaders have made it clear that they have high hopes for the partnership with Perplexity, an AI-powered search engine that competes with OpenAI’s ChatGPT and Anthropic’s Claude to answer questions from users.
“The Perplexity Assistant, released earlier this year, will become the main feature of Deutsche Telekom’s new AI Phone in the course of the year,” the statement notes. “ It processes language, text, and images. Creates calendar entries, writes emails, makes summaries,s and translates content.”
While some questions abound as to whether or not Deutsche Telekom will be able to use the phrase “AI phone” without violating trademark laws, the company seems focused on moving forward with its new device and rolling it out by next year.
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