Artificial Intelligence Phones Introduced by Telekom, Rival Companies Adapt to Compete
Deutsche Telekom Unveils Affordable AI-Powered Smartphone
Deutsche Telekom has made a splash at the Mobile World Congress (MWC) in Barcelona with the introduction of its new AI phone, priced at an affordable €149. The device, which is an upgraded version of the T-Phone that Telekom has been selling for several years, is set to challenge the smartphone market with its deep AI integration.
The AI assistant on the Deutsche Telekom smartphone, known as the Perplexity Assistant, is embedded directly into the device. This allows for app-less interaction via hardware buttons, voice, or text. The assistant can provide a range of services, including real-time translation, trip planning, tutoring, email drafting, content summarization, and image editing.
Claudia Nemat, the CEO of Deutsche Telekom, values AI as "the big technology of our time," despite people's fears about it. The company plans to release a Pro version with more advanced features later this year.
The AI phone, launched in 9-10 European countries, also includes an 18-month subscription to Perplexity Pro and a 3-month Picsart Pro license. Bundle deals can reduce the cost drastically when paired with tariffs.
In comparison, Google's Pixel smartphones lead the industry in AI assistant integration, but typically come with a higher price tag than Deutsche Telekom’s entry-level AI phone. Other smartphone manufacturers generally integrate AI assistants as software apps, such as Apple’s Siri and Samsung's Bixby, rather than embedding an app-less AI assistant system activated via hardware buttons.
Deutsche Telekom's approach offers a low-cost, hardware-embedded AI assistant experience without the need for multiple apps, targeting broader AI accessibility. Other providers tend to focus on app-based AI assistants with more expensive flagship devices.
The production location of the Deutsche Telekom smartphone is not specified in the article. A survey by YouGov showed that only 15% of Germans are aware of and have used AI chatbots like ChatGPT, Gemini, or Perplexity. Meanwhile, other German mobile network operators are not pursuing in-house AI phone development. Instead, they rely on partnerships with Google, Microsoft, and other providers for smartphones and AI technology.
Samsung and Apple also offer smartphones with AI assistants, known as AI agents, for simplified app usage. However, these devices typically start from several hundred euros, making Deutsche Telekom's €149 AI phone significantly more affordable.
On the Deutsche Telekom smartphone, users can swipe away the AI interface to see the apps as usual. Established smartphone manufacturers are increasingly integrating AI functions into their devices, but Deutsche Telekom's approach offers a unique blend of affordability and AI integration that sets it apart from the competition.
Despite a few shortcomings in the demonstration of the AI phone at the MWC, where the AI assistant misunderstood a question, Deutsche Telekom's AI phone is poised to make waves in the smartphone market with its innovative approach to AI integration.
