Smartphones, prices on the rise but the recovery also depends on AI

Since there has already been an increase in upstream prices, as soon as these new productions come onto the market, we will soon see a concomitant increase in public prices.

AI represents a fundamental switch for the growth of the mobile market. It is set to be more disruptive than the Internet in the 1990s, or Nfc in the early 2000s. It is not just an add-on feature: it transforms the interaction with technology, making smartphones smarter, more personalised and more useful.

There are 3 types of AI: AI that enhances the actions we already take with the phone, such as photography; AI that helps us, such as Copilot, Gemini, which allow us to make specific requests and get articulate content; and predictive AI, which because it knows us intimately, proposes what to do and how to act. An evolution that will lead to the physical transformation of smartphones, requiring more powerful and optimised processors without compromising autonomy.

As soon as predictive AI arrives in smartphones and materialises in tangible applications that can help us in our daily lives and give us unique benefits, consumers who want to experience these things will decide to change their smartphones.

So this is just the beginning of AI, and I am convinced that the responsibility of us as manufacturers is not only to invest in its development, but also to educate consumers about the concrete benefits and changes it will bring to their daily work and private lives. This is crucial for the adoption and long-term success of AI.

As Motorola we are also developing predictive AI, capable of anticipating user needs based on context and interests, and it is this revolution that will put the smartphone back at the centre of digital habits.

Finally, the recent unveiling of Lenovo and Motorola Qira, a personal and multi-device ambient intelligence, integrated at the system level for proactive and contextual assistance, reinforces Motorola and Lenovo's leadership in the future of AI.

In recent years, the electronics market has been going through a complex phase. We have witnessed a shift in the priorities of consumers, who now value more goods and services that improve their quality of life: travel, health, leisure. Telephony, along with other segments such as televisions and screens, is shrinking slightly.

This trend is partly due to a slowdown in the pace of innovation. We have experienced a tremendous acceleration for years, but now the lack of device differentiation has lengthened the average lifespan of smartphones, reducing the frequency of purchase, precisely because we lack the 'leap' that motivates turnover.

In this scenario, innovation is no longer just a competitive factor, but becomes the essential lever to trigger a new cycle of growth and turnover. And this is where, as we have already discussed, Artificial Intelligence assumes a central role. It is the technology capable of going beyond the simple optimisation of existing functions, radically redefining the smartphone user experience and stimulating a new demand.

At the Mobile World Congress, these issues will be at the heart of the debate, and it is the perfect opportunity to show how Motorola, with its vision and investment in AI, is proactively responding to these market challenges, proposing solutions that return to generating value and true innovation.