Competition for Samsung and Apple: Telekom takes a different approach with affordable AI phone

AI agents are designed to simplify app use on smartphones. Samsung and Apple are also relying on the technology. Following its launch in March, German communications giant Telekom is now bringing an AI phone without visible apps to stores. And at a significantly lower price than the competition.
Deutsche Telekom has launched a smartphone without visible apps. This is made possible by a voice assistant equipped with artificial intelligence (AI). The user initially sees only a magenta-colored phone interface and asks a question, whereupon the voice assistant from the American AI company Perplexity responds and displays information, such as shopping suggestions or translations of restaurant menus.
Clicking on apps is no longer necessary. They're on your phone, but they're running in the background. You can swipe away the AI interface and then see the apps as usual.
Major smartphone providers have similar concepts: Samsung, with its "Galaxy AI," and Apple, with its "Apple Intelligence," also rely on AI assistants (also called AI agents) to simplify app use. Whether Deutsche Telekom can compete with such strong international brands with its own smartphone is questionable. The Bonn-based company is focusing on keeping the price as low as possible: Deutsche Telekom's AI phone costs just €149, significantly less than other smartphones.
The device allows "compact access to various AI services and thus a simple experience," says Telekom board member Claudia Nemat, describing AI as "the great technology of our time," but one that still poses many reservations.
Production in VietnamA company in Vietnam is manufacturing the smartphone on behalf of Deutsche Telekom. The AI phone is, in a sense, a further development of the T-Phone, which Deutsche Telekom has been selling for several years. The Bonn-based company is keeping quiet about the T-Phone's success and has not disclosed the number of units sold.
There's also a tablet version of the AI phone. These new devices can be seen as part of Telekom's advertising strategy to position itself as an innovative company.
What is the competition doing?The other German mobile network operators are refraining from such proprietary developments. While Vodafone, O2, and 1&1 emphasize the benefits of AI functions for mobile phone operation, they also point out that there are already major providers of smartphones and AI technology on the market.
"We rely on partnerships with Google, Microsoft, and other providers whose smartphones and operating systems are used millions of times by consumers every day," says Guido Weissbrich, member of the management team at Vodafone Germany.
An O2 spokesperson says that established smartphone manufacturers are increasingly integrating AI features into their devices. "These developments are already setting standards for millions of users worldwide." O2, for example, is focusing on the use of AI expertise in its mobile network.
Performance did not always go smoothlyDeutsche Telekom had already unveiled its AI phone in March at the MWC mobile communications trade fair in Barcelona. Board member Nemat demonstrated the device and asked sample questions, which the AI assistant answered. This often worked well – for example, she filmed her surroundings, after which the AI assistant described them to her in detail. This is intended to help people with poor eyesight or who are blind.
At that time, however, shortcomings also became apparent: Once, Nemat asked about the best tapas bars in Barcelona, whereupon the AI assistant promoted the benefits of helicopter flights during a city tour—in other words, it was talking about a completely different topic. Telekom explained this slip-up by citing the difficult acoustics in the exhibition hall; the AI assistant had misunderstood the question. In fact, it was very loud during the demonstration.
Source: ntv.de, gut/dpa
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