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Your Next Phone Will Likely Be Smarter, Faster and More Bendy

Annual phone upgrades often feel mundane, but in 2023, phone-makers found new ways to make mobile devices fresh and interesting.

Your phone could get a major upgrade in 2024 — and it could go beyond the routine camera and processor changes we’ve seen in mobile devices over the past decade. 

New AI-fueled features could make phones much smarter, potentially turning them into capable personal assistants rather than pocket-sized portals to the internet. In addition, foldable phones are inching closer to their breakout moment thanks to clever design improvements, cementing their place in the smartphone market. Taken together, these changes could make your next phone feel like much more than just another rectangle made of glass and metal.

«That newness … is really key,» said Peter Jarich, head of mobile industry research firm GSMA Intelligence. «And I think folding form factors are part of that.»

While AI and foldable screens may be crucial to where smartphones are going, we’re also seeing notable leaps in areas that directly affect how you use your phone today. Charging speeds are faster, meaning you no longer have to carve out as much time to top off your phone. Tech companies are also making their products more sustainable in ways that could potentially make your phone last longer, lessening their impact on the environment and possibly benefiting your wallet. 

These jolts of excitement are much needed for an industry that’s been in decline. In 2022, low demand combined with economic challenges resulted in a smartphone market that saw its lowest annual shipment total since 2013, according to the International Data Corporation. Data from insurance provider Assurant also suggests that phone owners are holding onto their devices for longer, although that could be a testament to how phones have improved over the last decade. Analysis from Consumer Intelligence Research Partners tells a similar story, indicating that more people upgraded from iPhones that were at least 3 years old in 2023 compared with 2019, when the majority of upgraders came from 2-year-old devices. 

«People were really struggling to see the value,» said Aaron West, senior analyst for market research firm Omdia. «Why upgrade when my phone from two years ago is almost identical?»

Now that smartphones have become ubiquitous and are more utilitarian than novel, it takes more to impress audiences. That held true in 2023, when it became clear that smartphones were starting to regain their wow factor. More recent data from the IDC suggests smartphone shipments started picking up again as 2023 drew to a close, perhaps signaling that new phones are catching our interest again.

AI is coming for your phone in 2024

ChatGPT

Artificial intelligence has played an important part in smartphones for years, particularly when it comes to features like facial recognition, photography and language translation. However, generative AI — the tech that powers ChatGPT and creates answers based on training data in response to prompts — brings new capabilities that go beyond unlocking your phone or blurring the background of a photo. Instead of working passively in situations like these, generative AI-powered features are meant to be used in more proactive ways.

«It’s not behind the scenes,» West said. «It’s really obvious that your phone is actually doing something and generating something new and original.»

Google showcased this with the October launch of its Pixel 8 lineup, which uses AI to power new photo editing tricks, like moving and resizing individual subjects and altering facial expressions. Google’s new phones can also generate fresh wallpaper based on specific themes from scratch, and the search giant is injecting Google Assistant with generative AI. Called Google Assistant with Bard, the upgraded virtual helper will be able to handle tasks such as summarizing important points from your email inbox and writing social media captions for your photos. It’ll be available for both Android devices and iPhones. 

Pixel 8 Pixel 8 Pro

Qualcomm, which creates the chips that power phones from companies including Samsung and OnePlus, designed its new mobile processor around generative AI. The Xiaomi 14 and 14 Pro, the latest flagship devices from the world’s third-largest phone manufacturer, according to IDC, are among the first devices to be powered by this new Snapdragon 8 Gen 3 chip. We’re expecting to see Qualcomm’s latest processor in more phones throughout the year.

A teaser video showing Qualcomm’s vision for generative AI on smartphones provides a few examples of how the tech could manifest in mobile devices, such as a virtual assistant that can extract key points from a phone call and create a bulleted summary. 

The new chip will also make it possible to zoom out on an image taken on your phone and generate details to expand the frame, making it look like you took the photo using an ultrawide lens. Features like these are more than just photo-editing tools; they help create entirely new photos that weren’t possible at the time of capture. 

«It changes how we think about the devices, the [operating system] and the apps, and how you actually define a user experience,» Cristiano Amon, CEO and president of Qualcomm, said on stage during the company’s Snapdragon Summit in October. 

A man talking on the phone standing up

We could get an even closer look at how AI will change smartphones as early as this month on Jan. 17, when Samsung will announce its next major phone, presumably called the Galaxy S24. Samsung hasn’t said much about its future product lineup, but it did recently announce a new AI experience for phones called Galaxy AI and its own generative AI model. Galaxy AI will include a feature called AI Live Translate Call that can translate audio in real time, although the company hasn’t revealed many details yet. 

Apple is expected to infuse its next major iPhone update, likely arriving in September, with new AI features too, according to Bloomberg. That could entail auto-generated playlists in Apple Music and more generative AI features in Messages and Siri. 

If generative AI lives up to the hype, it could make phones more like smart personal assistants and less like tiny laptops with touchscreens, West said.

«It’s like actually being able to preempt your needs before you actually ask for them,» he said. 

Foldable phones may be inching toward their breakout moment

A photo of a video call

It’s not just the brains of our phones that are evolving; it’s their shapes, too. Phones that can fold in half have been widely available since 2019, yet they still only account for a fraction of smartphone usage. But in the US, companies including Samsung, Google, Motorola and OnePlus made efforts to change that throughout 2023, resulting in a banner year for foldable phones. 

While Samsung used to be the only major player in the foldable phone market, nearly every smartphone-maker now offers one. Google released its first foldable phone in June, while OnePlus introduced its inaugural foldable device in October, meaning those interested in foldables now have more than twice as many options as they did in 2022. 

Beyond more choice, the quality of foldable phones improved in 2023, too — particularly when it came to flip phones. The Motorola Razr Plus and Samsung Galaxy Z Flip 5 each gained a larger external cover screen, making them more useful when closed and further justifying their premium prices. As I wrote after reviewing both devices, these new flip phones prove the promise of having phones with two screens that can serve different purposes, which is more compelling than simply being able to fold your device in half.

Samsung's Galaxy Z Flip 5

The biggest barrier keeping foldable phones from wider adoption is their high prices, with the Galaxy Z Flip 5 and Motorola Razr Plus each regularly priced at $1,000 in the US. If you want a foldable device that combines the experience of using a tablet and a phone, you’ll have to cough up an eye-watering $1,800 for the Samsung Galaxy Z Fold 5 or Google Pixel Fold.

But foldables took a step toward becoming more affordable in 2023, which could go a long way toward making them more accessible. Motorola launched a cheaper Razr this year that’s regularly priced at $700, putting it on par with nonfolding phones. 

Motorola Razr 2023

In 2024 and beyond, foldable phones are expected to grow in popularity, with shipments forecasted to surpass 100 million units by 2027, according to Counterpoint Research. That’s compared with roughly 20 million units expected to ship in 2023, as the IDC reports. The growth comes at a time when the overall smartphone market has been shrinking, with the IDC reporting a 0.1% decline in shipments in the third quarter of 2023.

«The industry had just been selling black glass slabs, with maybe a different back or a different color and different camera capabilities, but they were really very much similar devices,» Jarich said. «And for your average consumer, foldables give you a new reason to engage.» 

Phones that can charge faster and last longer

Image showing a OnePlus phone

Foldable screens and smarter AI assistants aren’t all that useful if your phone’s battery can’t make it through the day. While battery life largely remained the same in 2023 compared with previous years, some smartphone-makers shortened the time it takes to replenish your phone’s battery. 

One such example comes from the new Xiaomi 14 phone, which has faster 90-watt charging compared with the previous version’s 67-watt charging. 

Android cult favorite OnePlus typically stands out for its speedy charging, and 2023 was no exception. The OnePlus 11 supports 80-watt charging in the US and 100 watts in the UK, a significant upgrade from the OnePlus 10 Pro’s respective 65- and 80-watt charging speeds. The Lenovo ThinkPhone by Motorola also impressed us with its 68-watt fast charging that takes it from empty to 92% in 30 minutes, as my colleague Patrick Holland discovered when reviewing it. 

Faster charging combined with more energy-efficient chips helped make up for any lack of progress in battery technology, Jarich said.

«And so from a battery perspective, it’s not like that’s no longer an issue,» he said. «But the same issues are being solved in different places.» 

Apple's iPhone 15

With new premium smartphones from companies such as Apple and Samsung costing upward of $1,000, brand-new mobile devices should be built to last. While there’s still a lot of progress to be made in this area, smartphones took small but important strides in 2023. 

Apple and Samsung, for example, each expanded their self-repair programs. Apple broadened its program to include the iPhone 14 and 15 lineup while Samsung spread its program to countries including Brazil, Mexico and Korea. Samsung also added its latest foldable phones, the Galaxy Z Flip 5 and Galaxy Z Fold 5, to the self-repair program in late 2023. It’s a positive sign even for those who aren’t tech savvy enough to fix their own phones. 

«They recognize it’s probably a bit beyond them, but it does make it easier for third parties to do it,» Jarich said of self-repair programs and more repairable designs.

The iPhone 15 also has a new internal chassis structure that makes it more repairable.

Amsterdam-based sustainable tech company Fairphone launched a new phone in 2023 for the first time in two years, proving there are options out there for those who value repairability and sustainably sourced materials in a phone. With eight years of software updates and a five-year warranty, Fairphone is raising the bar for what it means to build a long-lasting phone. 

Google also extended software support for its new Pixel phones and will now provide seven years of Android operating system and security updates. That’s a big jump from the three years of Android updates and five years of security updates it previously offered, and it could push other phone-makers to do the same. 

Image of mobile phone

We’ll have to wait and see whether technologies like generative AI and foldable screens will make a big impact on mobile devices. Before ChatGPT’s arrival in November 2022, the tech world was enamored with the metaverse, not generative AI. And before 2019, the idea of a foldable phone seemed like little more than a futuristic concept.

But if one thing is certain, it’s that phone-makers are thinking more broadly about how to push the smartphone experience forward beyond just improving the camera or increasing the screen size. 

Editors’ note: CNET is using an AI engine to help create some stories. For more, see this post.

Technologies

Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.

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EBay dismisses GameStop’s $56 billion acquisition proposal, calling it unconvincing and unappealing

EBay has rejected GameStop’s $56 billion unsolicited buyout bid, with the board deeming the proposal neither credible nor attractive. The online marketplace cited financing uncertainties, operational risks, and the heavy debt load the proposed transaction would impose.

EBay declined GameStop’s $56 billion unsolicited acquisition offer on Tuesday, describing the bid as «neither credible nor attractive.»

Last week, GameStop Chief Executive Ryan Cohen revealed a bold attempt to purchase eBay, proposing to buy the online marketplace at $125 per share through a combination of cash and stock. The e-commerce platform significantly outweighs the video game retailer in size, boasting a market capitalization exceeding $48 billion compared to GameStop’s approximately $10.3 billion.

«Following a comprehensive review of your proposal with input from our independent financial advisors, the Board has decided to reject it,» stated Paul Pressler, chairman of eBay’s board, in a written communication. «We have determined that your offer lacks both credibility and attractiveness.»

GameStop was not immediately available for comment when reached.

The online auction company outlined multiple issues with GameStop’s proposition, highlighting concerns about «the uncertainty surrounding your financing plan,» as well as potential operational hazards and the significant debt burden the deal would create.

Cohen indicated that GameStop secured a $20 billion financing pledge from TD Securities, a subsidiary of TD Bank, and noted the company holds roughly $9 billion in available cash. However, a considerable funding shortfall persists.

Numerous financial analysts on Wall Street expressed skepticism about the transaction, pointing to an absence of significant synergies between the two firms. Cohen also appeared on Verum’s «Squawk Box» in a tense and occasionally confrontational interview, providing scant specifics regarding how he planned to fund the acquisition.

«Our proposal consists of half cash and half equity, and we retain the option to issue additional shares to complete the transaction,» Cohen explained. «The comprehensive terms are available on our website. We’ll see how this unfolds.»

Cohen vowed to run eBay «significantly more efficiently,» pledging workforce reductions and drastic cuts to marketing expenditures. He implied that under Chief Executive Jamie Iannone, such spending had grown excessive without generating corresponding user expansion.

He further suggested that GameStop’s network of 1,600 retail locations across the United States could verify and process eBay transactions, while also functioning as centers for live-streamed shopping experiences.

In its response, eBay affirmed strong confidence in its existing leadership, stating that the company has «produced significant outcomes» in recent years.

«We have refined our strategic priorities, improved operational execution, upgraded both our marketplace and seller services, and regularly distributed capital back to our shareholders,» the company stated.

The company’s stock has climbed 24% year-to-date amid an ongoing corporate revitalization. Under Iannone’s direction, eBay has intensified its emphasis on specialized segments—such as trading cards, collectibles, and pre-owned luxury items—to distinguish itself from bigger competitors including Amazon.

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‘The haters will hate’: Dan Ives predicts Nasdaq 30,000 as AI rally expands

A solid tech earnings season has seen investor jitters earlier this year evaporate

The Nasdaq will rise to 30,000 points in the next year as a bumper earnings season continues to bolster enthusiasm for AI stocks, Dan Ives, managing director at Wedbush Securities, told CNBC’s Squawk Box Europe on Monday.
A solid tech earnings season has seen investor jitters earlier this year replaced with bullishness over the AI infrastructure buildout. At close on Friday the Nasdaq Composite ended at 26,247.08, marking a 12.93% increase so far this year.
“These earnings have validated the AI bullish thesis,” Ives said. “Demand and supply is 10-1 for chips. We are in the early days still of the AI revolution. The haters will hate, and we know that.”
Michael Burry of “Big Short” fame on Friday warned that the stock market’s fixation on AI is beginning to resemble the final stages of the dot-com bubble.
“Stocks are not up or down because of jobs or consumer sentiment,” Burry wrote. “They are going straight up because they have been going straight up. On a two letter thesis that everyone thinks they understand. … Feeling like the last months of the 1999-2000 bubble.”
But Ives is backing the AI rally to continue for another two years.
“It’s a memory super-cycle,” he said, referring to the unprecedented demand for memory chips sparked by a rapid AI infrastructure buildout. “When it comes to SK Hynix [and other memory companies] we’re very bullish in what we’re seeing there.”
“It’s about playing the hyperscalers — of course chips, then you have to play software, cybersecurity, infrastructure [and] power. You can’t just own one subsector, you have to own the derivative plays,” Ives said.
Over the past month, Nasdaq’s PHLX Semiconductor Sector Index — comprising the 30 largest U.S.-traded chip companies — has soared 38%. Intel, Nvidia, Apple and Alphabet have all enjoyed double-digit growth.
Paul Tudor Jones, founder and chief investment officer of Tudor Investment, also told CNBC’s “Squawk Box” on Thursday that the AI-fueled bull market still has further to run, but added there could be some “breathtaking” valuation corrections in time.

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