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The OpenAI smartphone will fail, but it’ll be good for iPhone users

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Why This Matters

While OpenAI's ambitious attempt to create a smartphone centered around AI agents may not succeed, it highlights the ongoing influence of AI in reshaping mobile experiences. For consumers, this underscores the potential for more intuitive, task-focused interactions with their devices, even if the specific OpenAI device fails. The iPhone remains a central, reliable tool in daily life, with AI enhancements likely to complement rather than replace it.

Key Takeaways

The past few days have seen conflicting views from AI companies about the future of smartphones. Perplexity thinks AI will only benefit iPhones, while OpenAI reportedly thinks its own smartphone can render them obsolete.

I would bet very heavily that the OpenAI smartphone will either never materialize or will be a commercial failure, but I still think the attempt is good news for iPhone users …

Perplexity: AI won’t disrupt the iPhone

Perplexity CEO Aravind Srinivas doesn’t think AI presents a threat to iPhone; quite the reverse.

Here’s my opinion. I haven’t said this before. The phone, the iPhone is actually not getting disrupted by AI at all. In fact, the more AI works better, the iPhone essentially becomes your digital passport.

He says the iPhone is central to the ways in which we live our lives, and that isn’t going to change.

OpenAI smartphone

If a Ming-Ching Kuo report is accurate, OpenAI disagrees with this assertion. He suggests the company is working on its own smartphone.

OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028.

The company’s concept is that the operating system will be based on AI agents instead of apps. In other words, you won’t open a specific app to achieve a task – instead, you will delegate the task to an AI agent.

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