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How War in the Middle East Impacted the World’s Largest Mobile Phone Show

Hundreds of companies planned to gather in Barcelona to talk business, but as the conflict disrupted travel, not all of them arrived.

On a Tuesday in the middle of Mobile World Congress 2026, three industry experts gathered for a panel to chat about smart glasses and extended reality tech. But a fourth member of the panel, who was based in Dubai, never made it to the conference. Two days before, the US and Israel launched airborne attacks on Iran, and flights had been grounded throughout the Middle East.

Even thousands of miles away in Barcelona, on the western edge of the Mediterranean Sea, MWC was affected by the conflict. While events and meetings at the world’s largest mobile tech conference proceeded as planned, albeit under the anxious awareness of larger geopolitical events, there were notable absences. 

Some booths stood empty, and some meetings scheduled between absent attendees weren’t held. Exhibitors walked the halls and saw a diminished presence from Middle Eastern companies.

While the conflict was just beginning as MWC took place, it had already affected attendees and changed the experience. While distant from the fighting in the Middle East, the war’s impact was just as seriously felt in the middle of a conference about bringing humans together.

The financial, emotional and mental cost of war on a tech conference

The fourth panelist on Tuesday’s panel was supposed to be Roman Axelrod, cofounder of Xpanceo, who would have likely discussed the smart contact lenses the company intended to show off in prototype form at MWC. But neither Axelrod nor the samples ever left Dubai, where the company is based. Conference attendees who walked by Xpanceo’s booth were greeted by employees who had flown in from elsewhere and apologized that they had only hastily made video demonstrations of the technology samples that were supposed to be on display.

I had already planned to chat with Valentyn S. Volkov, co-founder and CTO of Xpanceo, who likewise didn’t make it to MWC. While the company was intentionally headquartered in Dubai as a reliable and predictable jurisdiction for business (as well as centrally located, with many business destinations within a 7-hour flight), the country falls within the airspace of the current conflict. As a result, businesses are losing money, especially funds spent on opportunities at MWC.

«We already kind of lost, I would say, a significant amount of resources — physical, mental, scientific resources — simply because we could not get everyone to Barcelona. We could not get our prototypes to Barcelona as planned,» Volkov told me.

Fortunately, Volkov was in good spirits when I chatted with him over Zoom via a laptop in Xpanceo’s booth. He was safe, noting that local authorities in Dubai were providing «logistic safeness.» 

Our chat quickly turned to the smart contact lenses that the company is working on, with plans to roll out functioning prototypes by the end of the year. As Volkov described their potential capabilities, they sounded like the next evolution of smart glasses, like the Google Specs that I saw at Google I/O last year, offering heads-up display information relayed from a nearby phone, and even potentially health data like glucose level readings taken from the lens’ contact with the eye’s tears.

«Those beauties were supposed to be shown for the very first time [at MWC], and we put lots of effort and resources into that. It’s completely bad luck,» Volkov said.

Thanks to modern network technology, Volkov and I were still able to have this virtual conversation — and fortunately, the war had not affected him or the infrastructure where he was. But anyone can tell you the value of having an in-person exchange over one on small screens. What was lost through the wires because Volkov wasn’t there to demonstrate features and concepts of Xpanceo’s products through body language and demonstration?

It’s not hard to imagine scaling that up to all the business conversations and networking opportunities lost to those whose flights were canceled and lives locked down due to the conflict in the Middle East. Some of those meetings could likely be shifted to digital chats like mine, but MWC is a show about making new connections in person, seeing new devices and getting updated on the latest tech trends across the mobile and telecom industries. 

But I met some attendees who were suffering the opposite fate, having flown out early from countries now in restricted airspace. They made it to MWC, but it’s too early to tell when they can fly home.

Stranded at MWC, return unknown

I sat down with Said Saidi, an exhibitor at the show, and chatted in between his calls home. I couldn’t imagine the strain he was under with family back in Dubai and no clear idea of when he’d be able to rejoin them. 

A resident of the United Arab Emirates for 19 years, Saidi was comforted to be able to chat with his family on the phone every few hours, who he said were safe. Aside from noise made by the defense system and drones coming from Iran, his reports from home said everyone is living peacefully and has no shortage of supplies, and they have so far had no major stress.

Saidi explained that this was counter to misinformation being spread on social media that says people have been stuck in the UAE without accommodation. As he said, and reports have echoed, the government and hotels have provided stranded travelers with free stays.

Saidi caught an early flight out to Barcelona the previous Friday, but most other exhibitors from the Middle East usually fly out on Sunday, he said. By then, commercial flights from the area were largely grounded following the initial strikes by the US and Israel on Saturday morning. He said the impact of this region-wide air travel blackout was stark. After walking around the show floor twice, even all the way out to the startup area at the far end of the convention center, the presence of attendees from the Middle East is «near zero,» Saidi said. 

While he made it to MWC, many of the meetings Saidi was supposed to have with peers from other Middle Eastern companies had to be canceled or held online. It’s a loss all around.

«Usually, the main purpose of the exhibition is to show that we are present, we are there, and also to meet new leads and new business,» Saidi said. While executives may normally move in their own circles, at MWC, they can be met on the show floor by anyone. «The exhibition is always a good chance to meet people and do that first handshake and build on it,» Saidi said.

Waiting for the limbo to lift, but the impact remains

In three days of running around the MWC show floor, I tried to gauge the scope of these absences. None was more obvious than in the startup area, 4YFN, which was filled with company representatives from every corner of the Earth — except a strand representing the Palestinian Information Technology Association of Companies. Just two booths were manned out of what was supposed to be seven, with the rest of the startup representatives unable to fly to the show.

The representatives who were there politely declined to comment for this story and weren’t sure when they’d be able to fly back. 

Saidi said the same. While he asserted that his company was taking care of him, and that he felt totally relaxed as long as his family was safe back in Dubai, he had no inkling of when he’d be able to return home.  

«I have zero expectations,» Saidi said. «At this point in time, we cannot predict anything.»

From within Dubai, during our conversation, Xpanceo’s Volkov had a more optimistic outlook, with significant hope that the situation would stabilize within a week. But if it is a prolonged issue, he said his company would be prepared for that, too. And work is continuing remotely in the meantime. 

The war is likely to have an impact on the mobile industry beyond MWC. Analysts have adjusted their previously dim projection on 2026’s expected phone sales to an even bleaker outlook, expecting a 13% drop over the year. Mostly, they blame the RAM shortage, which is plaguing the tech industry as AI data centers gobble up memory. 

But when I chatted with International Data Corporation’s Jeronimo Francisco, he noted that the regional chaos of the war with Iran contributed to that drop, at least in terms of disrupting supply chains, increasing the cost of oil and forcing companies to find workarounds for wartime bottlenecks.

«If there was no memory crisis, instead of the market dropping 13% it would drop 5 in the worst-case scenario, something like that,» Francisco said. 

It was a poignant moment for the mobile industry. Even as the AI industry-caused RAM shortage is poised to increase phone prices in 2026, MWC was awash in company slogans embracing AI agents and other applications of generative AI. Satellite companies heralded the era of increasing connectivity beyond the range of traditional cell networks. Going to the show is an opportunity to catch wind of exciting trends awaiting phone owners in the months to come. 

But even when MWC feels like being in a bubble of wonky news and enthusiastic predictions, sometimes the bubble is popped by global events that significantly disrupt lives. At CNET, we have covered a lot of the coolest discoveries we made at the biggest phone show of the year — but even immersed in the deepest phone dives, it’s important to remember the human impact of conflicts that reach thousands of miles to a convention center in a Catalonian beach town. 

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

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Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

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Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know

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