Technologies

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

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.

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.

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

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.

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.

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

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.»

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.

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

Investors Favor Alphabet’s AI Spending Over Meta’s Despite Both Beating Earnings Expectations

Despite both Meta and Alphabet surpassing earnings expectations and raising AI spending forecasts, investors reacted differently, with Alphabet’s stock rising 7% while Meta’s fell 7%, highlighting the market’s preference for companies with cloud infrastructure that can monetize AI investments.

On Wednesday, both Meta and Alphabet surpassed analyst expectations in their quarterly earnings, marking their most robust growth in several years. The companies also raised their annual capital expenditure projections, signaling a continued commitment to investing heavily in artificial intelligence infrastructure.

However, Wall Street responded differently to the two tech giants. Alphabet’s stock surged 7% in after-hours trading, whereas Meta’s shares dropped by 7%.

This divergence continues a pattern that has weighed on Meta during much of the generative AI expansion. Unlike Alphabet, Microsoft, and Amazon, which operate vast cloud infrastructure businesses that convert AI investments into revenue, Meta lacks such a division.

Consequently, convincing investors of the return on AI spending is more challenging for Meta CEO Mark Zuckerberg, as the benefits must primarily manifest through higher ad revenue and improved profitability.

All four major tech firms released their quarterly results on Wednesday. While Alphabet, Microsoft, and Amazon reported cloud divisions that outperformed expectations, Meta was the only one among them to see its stock decline.

Leading up to the earnings releases, Alphabet’s stock had climbed 118% over the past year, significantly outpacing Meta’s 21% gain. Amazon rose 40%, and Microsoft increased by approximately 8%.

«Google is outperforming its peers which is well reflected in the current valuation,» analysts at D.A. Davidson wrote in a report after the results, maintaining their neutral rating.

The capital expenditure figures across the board are staggering and continue to grow, partly because companies are spending more on memory due to a global shortage driven by surging AI demand.

Alphabet updated its 2026 capex guidance range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion. CFO Anat Ashkenazi said the company’s 2027 capex is expected to «significantly increase» from this year’s figure.

The spending forecast was coupled with revenue growth of 20%, the fastest for any quarter since 2022. Cloud revenue soared 63%, and Alphabet said it has a backlog of $460 billion, nearly double where it was last quarter, because of demand for AI infrastructure.

Defending the Spending

Meta upped its capex guidance for the year to between $125 billion and $145 billion, from a prior range of $115 billion to $135 billion, a move the company said, «reflects our expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future year capacity.»

Similar to when Meta raised its capex forecast in October, Zuckerberg spent time on the earnings call defending the company’s hefty AI spending, pitching it as necessary for future growth while bolstering the core online ad business.

«The trend over the last few years seems clear, that we are seeing an increasing return on the amount that we can improve engagement for people and value for advertisers,» Zuckerberg said. «This encourages us to continue investing heavily in what we expect will provide increasing value over the coming years as well.»

On the revenue side, growth is more impressive than at Google. Sales jumped 33% from a year earlier, marking the strongest period for expansion since 2021.

Zuckerberg said the company is «very focused on increasing the efficiency of our investments,» and is developing custom silicon with Broadcom while investing in a «significant amount of AMD chips to complement the new Nvidia systems that we’re rolling out as well.»

Meta CFO Susan Li told analysts that the company needs to spend big on AI in order to «meet our infrastructure needs and ensure we maximize our strategic flexibility over the coming years.» The company also has to ensure it has enough computing resources to train more AI models, build more products and help its AI agent push for consumers and businesses worldwide, Li said.

She added that Meta’s recent «multi-year cloud deals and our infrastructure purchase agreements» contributed to a $107 billion jump in contractual commitments during the quarter.

Still, investors are waiting to see new revenue streams come to fruition after Zuckerberg spent the past 10 months overhauling his company’s AI strategy and bringing in high-priced talent. Earlier this month, Meta debuted Muse Spark as its first proprietary foundation model.

Alphabet, meanwhile, has been cashing in on its bets, including on homegrown chips called tensor processing units (TPUs), which are increasingly competing with Nvidia’s graphics processing units (GPUs).

CEO Sundar Pichai addressed the momentum in the chip side of the business several times on Wednesday’s call.

«There’s tremendous demand for both AI solutions as well as AI infrastructure, including massive interest in our GPU offerings, as well as TPUs,» he said.

WATCH: Meta shares sliding

Technologies

Alphabet’s Q1 Earnings Expected to Reflect Sustained Expansion, Driven by Cloud Division

Alphabet’s Q1 earnings are expected to show strong growth driven by cloud and AI advancements, with revenue projected to rise 18.7% year-over-year. The company’s stock has surged 118% over the past year, supported by Gemini AI integration and expanding cloud infrastructure investments.

Alphabet is scheduled to release its first-quarter financial results after market close on Wednesday. Below are the key metrics Wall Street anticipates, based on analyst estimates from LSEG: — Earnings per share: $2.63 — Revenue: $107.2 billion Investors are also tracking several additional figures in the upcoming report: — Google Cloud: Estimated at $18.05 billion, per StreetAccount — YouTube advertising: Estimated at $9.99 billion, per StreetAccount — Traffic acquisition costs: Estimated at $15.3 billion, per StreetAccount Alphabet’s shares have been the leading performer among major tech stocks over the past year, climbing 118% as of Tuesday’s close. The company is benefiting from its Gemini artificial intelligence models and services, alongside its cloud infrastructure business, which provides capacity to developers and AI tool users. Analysts forecast an 18.7% increase in revenue from $90.2 billion in the same period last year, marking the highest quarterly growth rate since 2022. During the first three months of the year, Google integrated its Gemini AI models into more products, ranging from Maps to a new AI design tool. Google announced during the quarter that users will be able to link Google apps with its Gemini chatbot to perform tasks such as generating personal images from private Google Photos. Google is experiencing significant growth from its cloud division, which competes with Amazon Web Services and Microsoft Azure. Revenue is projected to surge 47% from $12.26 billion in the same quarter a year ago. Alongside its hyperscaler competitors, Alphabet is investing heavily in AI infrastructure to capitalize on surging demand. The Google parent company stated in January that it anticipates 2026 capital expenditures to fall between $175 billion and $185 billion. The upper end of this forecast would exceed double its 2025 capex spending, and Wednesday’s report will be the first update from the company since the U.S.-Iran conflict began in February, causing oil prices to spike. Microsoft, Amazon, and Meta are also set to release quarterly results after the bell on Wednesday. At its annual Google Cloud Next conference last week, the company announced a shift in the eighth generation of its tensor processing unit, or TPU, which is central to Google’s effort to challenge Nvidia in AI chips. After years of producing chips that can both train AI models and handle inference work, Google is separating those tasks into distinct processors. Alphabet’s investments may also be a focus for investors. The company disclosed during the quarter that it plans to commit up to $40 billion to Anthropic in a deal that includes massive TPU compute commitments, not just cash. Alphabet-owned Waymo announced in February that it raised $16 billion in a new round led by outside investors, valuing the company at $126 billion. Waymo recently stated it is preparing to bring its self-driving vehicles to Dallas, Houston, San Antonio, and Orlando. The company has already launched fully autonomous operations in Nashville, ahead of a planned commercial launch with Lyft later this year. The company also reduced some equity stakes. Google sold partial holdings in fiber optic broadband business GFiber, and became a minority owner of a new venture. Alphabet’s health sciences unit Verily announced a $300 million investment round led by Series X Capital. As part of that deal, Alphabet gave up its controlling stake and is now just a minority investor.

Technologies

Amazon to Release First-Quarter Financials Following Market Close

Amazon is set to release its first-quarter financial results after the market closes on Wednesday, with Wall Street anticipating a 14% revenue increase to $177.3 billion.

Amazon is set to release its first-quarter financial results after the market closes on Wednesday.

Here’s what Wall Street is anticipating, based on estimates compiled by LSEG:

— Earnings per share: $1.64

— Revenue: $177.3 billion

Wall Street is also tracking other key revenue figures:

— Amazon Web Services: $36.92 billion expected, according to StreetAccount

— Advertising: $16.87 billion expected, according to StreetAccount

Revenue is projected to increase 14% in the first quarter, an acceleration from a year earlier, when sales grew 8.6% to $155.7 billion, and roughly in line with last quarter’s 13.6% growth.

Investors will be closely watching Amazon’s cloud business, where revenue is expected to jump roughly 26% from a year ago. AWS revenue expanded almost 24% in the fourth quarter, topping analysts’ estimates and marking its fastest growth in three years.

Amazon and other big tech companies have been trying to justify their hefty artificial intelligence spending, which could approach $700 billion in 2026. Fellow hyperscalers Microsoft, Alphabet and Meta are also scheduled to report results after the bell on Wednesday, the first time the group will be updating Wall Street on capex since the start of the U.S.-Iran war in February.

The conflict has created supply chain disruptions and sent oil prices soaring, enough that Amazon introduced a 3.5% fuel surcharge for some of its third-party sellers.

Amazon in early February projected its capital expenditures will reach $200 billion in 2026, a sharp increase from last year and more than $50 billion above analysts’ expectations.

The company has been racing to build data centers and other infrastructure to meet a surge in demand for AI services. Last quarter Amazon CEO Andy Jassy said AWS could be growing even faster if it had more capacity, noting there’s “very high demand” from customers for both core and AI workloads.

Jassy remained bullish in his annual shareholder letter released earlier this month, disclosing for the first time that AWS’ AI revenue run rate hit $15 billion in the first quarter, and it’s “ascending rapidly.”

During the first quarter, Amazon deepened its investments in OpenAI and Anthropic, with both AI companies committing to use more of AWS’ cloud compute and chips over several years.

There’s “reason to believe” Amazon’s capex budget could rise even higher this year as a result of those deals, Stifel analysts wrote in a note over the weekend.

“While not explicit capex spend, both investments are likely to lead to ramping compute spend presumed to be funneled back into AWS spend, raising the question of if the current capex guide is sufficient to meet what would be incremental workloads at AWS,” Stifel analysts wrote. The firm has a buy rating on Amazon’s shares.

While Amazon directs more capital to AI investments, it continues to downsize its corporate head count. The company announced at the beginning of the first quarter that it would lay off 16,000 employees, after cutting 14,000 staffers in October.

Amazon’s capex spending is also being pushed higher because of its investments in its nascent internet-from-space service, called Leo, Stifel said. The company is aiming to begin commercial service in mid-2026.

Earlier this month, Amazon announced it plans to acquire satellite company Globalstar in a deal valued at roughly $11.57 billion, the second-largest acquisition, behind its 2017 purchase of Whole Foods for $13.7 billion.

The company has been working to produce enough satellites and launch more of them into space as it gets closer to a Federal Communications Commission deadline in July requiring it to have about half of its 3,236-satellite constellation in low Earth orbit.

Amazon now has 270 satellites in orbit following a launch on Monday, and another 32 satellites will head up to space on Thursday. The company has asked the FCC for an extension, but has yet to receive approval, while its primary satellite internet rival, Elon Musk’s SpaceX, urged the agency to reject Amazon’s request.

WATCH: Amazon needs to spend more to keep AWS as premier AI play