BARCELONA, 3rd March 2025 (BSS/AFP) – Enthusiastic optimism surrounding artificial intelligence (AI) and its potential to enhance devices will collide with growing concerns over trade tensions, sparked by the White House, at this week’s Mobile World Congress (MWC) in Barcelona.
The annual gathering, which brings together smartphone makers, telecom operators, and other connected services providers, is expected to attract around 100,000 participants to the Spanish Mediterranean port city, just one day before new US tariffs on Chinese goods take effect.
Many of the exhibitors at MWC are from China and will be subject to an additional 10 percent levy on imports to the United States, on top of the existing 10 percent tariff imposed by President Trump since his inauguration in January. Trump is also pushing for Mexico and Canada to follow suit.
The ongoing trade tensions could have far-reaching effects on the global technology and smartphone markets if tariffs are maintained or extended to other major economies, such as the European Union, as has been threatened.
“We expect the current geopolitical situation… to be a key topic of conversation” at MWC, said Ben Wood, research director at CCS Insight, noting “ongoing uncertainty around US tariffs and sanctions”.
The majority of critical tech components, including semiconductors, are produced in China, and this continued uncertainty over trade relations could prove disruptive.
“Nobody really knows what’s going to happen” on trade, said Pekka Lundmark, CEO of network hardware maker Nokia, during a pre-MWC event on Sunday. “Obviously, a global tariff war would not be beneficial for anyone,” he added, mentioning that his company is preparing for multiple trade policy scenarios.
AI Everywhere
As the event draws closer, many of the Chinese smartphone manufacturers, alongside other global telecom giants, have focused their pre-show announcements on the introduction of new products and investments.
Honor, a spinoff from tech giant Huawei, revealed its plans to evolve into “a global leading AI device ecosystem company”. The company announced that its upcoming smartphones will feature AI “agents”, developed in collaboration with American firms Google Cloud and Qualcomm, capable of performing tasks like scheduling events and making restaurant reservations.
Similarly, Xiaomi unveiled a new series of smartphones boasting high-quality cameras and integrated AI features.
The increasing focus on generative artificial intelligence (AI) has captured the tech industry’s attention since the launch of ChatGPT, making AI a must-have feature for companies developing new devices.
“AI will be an omnipresent topic at MWC, but industry observers are starting to experience ‘AI fatigue’,” Wood commented. “While AI has become central to most product announcements, it is often difficult to understand the real-world benefits for consumers.”
Features like AI-powered “agents”, as demonstrated by Honor, are one attempt to showcase the practical applications of AI in smartphones.
Despite concerns about the overhype of AI, smartphone sales have shown a significant recovery. After two years of contraction, sales grew by 6.3 percent in 2024, surpassing 1.2 billion units, according to market research firm IDC.
Manufacturers remain optimistic about sustaining this growth throughout the year.
“The strong growth seen in 2024 demonstrates the resilience of the smartphone market,” said IDC research director Nabila Popal. “Sales defied lingering macroeconomic challenges, foreign exchange concerns in emerging markets, ongoing inflation, and subdued demand,” she concluded.
Supplementary Information:
The debate surrounding AI and trade tensions is particularly relevant in light of the ongoing global economic volatility. As the world grapples with the impacts of trade wars and inflationary pressures, the smartphone and tech industries continue to serve as a bellwether for broader economic trends. The Mobile World Congress will not only showcase the latest in mobile innovation but also highlight the industry’s efforts to adapt to these external challenges.
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