It’s Friday, and today we’re going to have a nice, easygoing chat about Wall Street, market capitalization, international economic feuds, and more. But don’t worry – despite all the financial talk, we’ll get to the good stuff about phones in just a moment.
In mid-February 2024, Nvidia is taking center stage. The company has been incredibly successful lately, with its stocks soaring by nearly 50% in just one month. In 2023 alone, Nvidia’s shares saw gains of 240%, making it the best-performing S&P 500 stock of the year. Arm Holdings’ shares also jumped by an impressive 80% recently thanks to high demand for AI chips.
Nvidia even managed to surpass Alphabet as the third most valuable US company. Microsoft currently holds the top spot, with Apple trailing behind as the second most valuable company. It seems that Microsoft’s recent commitment to AI and Apple’s lag in this area may have contributed to their positions.
Now let’s talk about China. The ongoing economic clash between the US and China often revolves around chips and cutting-edge technology. This clash was evident when Huawei released the Mate 60 Pro with technological capabilities that caught US officials off guard.
After reportedly selling 30 million Mate 60 phones, Huawei is now slowing down production due to a focus on AI. The company is prioritizing its Ascend AI chips over its premium Mate 60 phones because of low yield rates following US sanctions in 2019.
With Huawei reducing phone production due to its focus on AI chips, this could lead to fewer available phones and potentially higher prices.
It seems that everyone wants a piece of the AI pie in the mobile world. Samsung recently announced its Galaxy S24 line with a new Galaxy AI feature pack while Google’s Pixel 8 duo from last year was also heavy on AI features. Apple may be late to the party but is expected to introduce an iOS update heavily focused on AI at WWDC 2024.
AI is becoming increasingly important in smartphones, with mid-range devices expected to handle cloud-backed AI tasks while flagship devices strive for on-device processing as much as possible.
As we move towards an era where AI becomes an integral part of our smartphones, it’s likely that we’ll encounter some market turbulence along the way. This could lead to fewer available phones and potential price increases due to high demand for devices with advanced AI capabilities.
Just like how smartphones replaced traditional cellphones for many people, it seems that “AI-phones” are set to revolutionize our current smartphone landscape. As we await further developments in this area, we can expect challenges such as pricier and harder-to-come-by phones (especially flagships) due to growing demand for advanced AI capabilities in our mobile devices.
