The CEO of Qualcomm, Cristiano Amon, believes that the smartphone market could experience a revival with the integration of artificial intelligence (AI) technology. In an interview with CNBC’s Arjun Kharpal, Amon expressed his optimism about the potential of AI, stating that the company’s upcoming Snapdragon Summit in October could pave the way for significant advancements in mobile technology. Amon anticipates that the summit will showcase incredible use cases from original equipment manufacturers (OEMs), creating a new upgrade cycle for smartphones.
Amon’s perspective on the importance of AI in revitalizing the smartphone industry comes at a time when smartphone sales have been declining due to increased cost-consciousness among consumers. Many users are choosing not to upgrade their devices as they perceive limited differences between new models and older ones already equipped with advanced cameras and processors. In 2022, global smartphone sales dropped by 11.3% to 1.21 billion units, the lowest level observed since 2013, according to data from market research firm IDC.
Amon draws parallels between the impact of Microsoft’s advancements on PCs and the future potential of AI in the hands of consumers. He emphasizes the significance of capabilities like running ChatGPT and other AI models locally, which, once accessible to consumers, could have a substantial impact on the smartphone industry. While Amon acknowledges that the timing of this transformation is uncertain, he firmly believes that it will inevitably take place.
Unlike its semiconductor rival Nvidia, Qualcomm is taking a distinct approach to AI integration. Rather than focusing on data centers like Nvidia, Qualcomm aims to bring AI directly to smartphones and other devices. Amon emphasizes the opportunity this strategy presents and states that it will become apparent once the AI opportunity successfully materializes. He highlights Qualcomm’s commitment to innovation, evident in their efforts to bring AI to consumer devices.
Artificial intelligence holds great potential for the future of smartphones. Qualcomm’s CEO, Cristiano Amon, anticipates that the integration of AI technology will give rise to a new upgrade cycle in the industry. Despite the current decline in smartphone sales and consumer hesitation to upgrade, Amon remains optimistic about the transformative power of AI. By capitalizing on the Snapdragon Summit and showcasing innovative use cases, Qualcomm aims to pave the way for the next wave of advancements in mobile technology. With its unique approach to AI integration in smartphones and other consumer devices, Qualcomm is at the forefront of this evolution and is poised to drive the industry forward.
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