Today’s selection of the biggest announcements from MWC 2025, from eye-catching foldables and AI-powered phones to operators’ expansion into quantum technologies and enterprise services. We also explore advancements in generative audio and the growing role of satellite broadband.
Huawei Steals the Show for Foldables with Huawei Mate XT
As we predicted, flexible display technology and foldables provided plenty of eye candy at MWC, with numerous models on display. Flip and foldable phones featured on most leading device-makers’ stands, but the dual-fold, triple-screened Huawei Mate XT stole the show, despite being announced in China in September 2024. This was the first time many people in Europe could get their hands on this innovative device. The jury is still out on whether the design will resonate, particularly given its eyewatering price of €3,499, but there’s no question that it’s an impressive technological development.
There were plenty of examples of this design around the show. Samsung has consistently shown prototypes through its display division and once again presented a device using this design. Another example was a concept product from Tecno, which displayed its Phantom Ultimate 2 trifold smartphone, unveiled in August 2024 and not dissimilar from Huawei’s Mate XT. No information was given about the price of this device or release date.
At the other end of the foldables market, prices continue to crash. This trend started last year with cheaper foldables from several companies. This year, prices hit a new low, with our team spotting a 4G flip phone for under $200 when ordered in volume. We are alarmed by this development and fear it will do little to help the category.
Interestingly, our recent survey of mobile buying behaviour revealed that most consumers who are hesitant to purchase a foldable phone say they’re simply happy with their current device. They also continue to have concerns about the longevity of foldable devices, exacerbated by the poor residual values of these phones when traded in.
Telefonica’s Quantum Move: A Strong Step, But Can It Keep Up?
The race for quantum supremacy is in full swing, with Amazon Web Services (AWS), Google, IBM and Microsoft making significant advances in quantum computing hardware. Telefonica’s announcement of a dedicated centre of excellence for quantum technologies at MWC is an important step in positioning telecom operators in this evolving landscape.
By structuring its quantum strategy around communications and cybersecurity, computing and simulation, and sensors and metrology, Telefonica is acknowledging the broad applications of quantum technologies beyond just computing. Its focus on crypto-agility and post-quantum cybersecurity aligns with the growing realization that quantum advancements could soon render classical encryption obsolete.
The operator could differentiate itself through its role as a facilitator of best practices, technology validation and user education. It has the infrastructure and reach to bridge the gap between quantum innovation and real-world applications, particularly in secure communications and networking. However, the competition is fierce. AWS, IBM and Microsoft have dedicated years to developing quantum ecosystems, and their partnerships with research institutions and enterprise customers are well established. To avoid being sidelined, Telefonica must build strong alliances with existing quantum leaders and harness its network expertise.
Deutsche Telekom Strikes Deal with Perplexity for AI-Powered T Phone
Deutsche Telekom made a splash at MWC last year with its AI-powered prototype T Phone, which it had developed with partner Brain AI (see here). This was an early example of so-called agentic AI, which has become a very popular theme in 2025. Fast-forward 12 months and Deutsche Telekom is now partnering with Perplexity to bring Magenta AI to its T Phone range, along with ElevenLabs, Picsart and other AI-infused services.
The first T Phone with Magenta AI is poised to launch in the second half of 2025, and the company is hoping this will help it stand out from the crowd at a time when AI is starting to become expected in smartphones. The company will also offer some AI capabilities to T-Mobile users through its MeinMagenta app.
This comes at a time when Apple and Samsung are pushing AI down the price curve. Galaxy AI is now supported on the more affordable Galaxy S24 FE, which costs about €600; intelligent features have been added to the Galaxy A series devices with prices between €300 and €400 (see here); and Apple Intelligence is now supported on the recently announced iPhone 16e, priced at about €700. However, the T Phone range has historically targeted a far lower price range of €200 to €300, so adding AI capabilities to devices in this segment breaks new ground.
CCS Insight research shows that awareness of AI is very high among Europeans, with 90% of consumers telling us they know what AI is. More encouraging for Deutsche Telekom is that over four in 10 people CCS Insight interviewed as part of its consumer research said they would pay more for a smartphone with AI capabilities.
The T Phone is designed to be a cheaper alternative for consumers who just want a phone. Infusing it with AI will make it more attractive to a subset of those people. It gives the operator a good story to tell, particularly in a retail store where a sales assistant has more time to pitch the product as an alternative to a dedicated brand like Apple or Samsung. Furthermore, Deutsche Telekom has an opportunity to curate unique experiences for its consumers and expects to continuously evolve the user experience.
Telecom Must Move Beyond Connectivity or Be Left Behind
Capgemini’s latest enterprise-focused telecom research, released during MWC, highlights a major shift in business expectations. Businesses no longer just want connectivity — they expect strategic partners that understand their industry, integrate IT and security, and offer tailored solutions that support digital transformation.
MWC has been packed with announcements on AI, private networks and 5G enterprise applications, but the real challenge is whether operators can turn these into real value for businesses. Capgemini’s research suggests many aren’t keeping pace. Only 27% of enterprises rate their telecom provider’s customer experience as exceptional, despite half being willing to pay more for improvements. Businesses are also pushing for simplification, with 70% calling for digitalized, automated services that reduce complexity and improve procurement.
CCS Insight’s report on the enterprise market for operators reinforces this urgency. Traditional connectivity still dominates enterprise telecom revenue, but growth is flat, especially in mature markets. Instead, enterprises are investing in cloud, cybersecurity, AI and private networks — areas where operators risk being overtaken by IT providers if they don’t adapt fast. Security remains a clear priority, with more than 70% of enterprises ranking cybersecurity as critical.
Some operators at MWC showed signs they’re getting the message. Keynote sessions on Monday highlighted a focus on API-driven services, automation and partnerships with cloud and AI firms. But the pace of change remains a concern. The message to telecom providers is clear: move beyond connectivity or risk being left behind. With consumer revenue stagnating, enterprise transformation is the biggest opportunity — but only for those ready to step up.
Arm and Stability AI Partner to Deliver Generative Audio Running on Arm CPUs
Arm and Stability AI have announced a partnership to bring the latter’s model for generative audio to mobile devices through Stable Audio Open. Using Arm’s KleidiAI libraries announced at Computex in 2024, audio sample generation can take place directly on a device by running on the CPU without an internet connection.
Arm’s demonstration of the ability to run large language models directly on the CPU was prominent at MWC 2024. In 12 months, this has progressed markedly. The launch of Kleidi provided developers with an open-source library featuring optimized frameworks to enable models to run on Arm CPUs.
We see this as a significant advancement. Although the introduction of AI accelerators, or neural processing units, in high-tier devices is unlocking the ability to run generative AI applications on premium smartphones, the need for custom silicon and significant memory resources means this remains exclusive to premium-tier hardware. Running models on a wider array of smartphones will be central to scaling the opportunity for generative AI experiences and delivering them more economically with optimized performance and efficiency. Arm’s approach inevitably requires compromises, but it’s an important step to enable experiences on mass-market devices — essentially any device running an Arm CPU.
This reinforces our view that different tiers of the market will see a different approach to the delivery of AI-based applications. But although the concept of third-party generative AI applications and agents is an exciting theme at MWC, the bigger challenge emerging is one of business model rather than technology.
Oppo Reveals AI Plans in Partnership with Google Cloud
At a dedicated AI Tech Summit event on the sidelines of MWC, Oppo unveiled its plans to further develop AI services on its smartphones.
We had widely predicted that AI would be the overarching theme of MWC, so it’s little surprise to see Oppo joining the ranks of other Chinese phone-makers that flexed their AI muscles at the event. Like Honor, Oppo has teamed up with Google Cloud to offer a range of services, but notably it focused on privacy by implementing its Private Computing Cloud using Google’s expertise in this area. With AI being a lightning conductor for privacy concerns, particularly among Chinese device-makers, this is an interesting move by Oppo as it seeks to gain a foothold in the AI-enabled smartphone space.
The company also outlined its wider AI ambitions, revealing plans to bring generative AI features to 100 million users by the end of 2025, doubling its 2024 target of 50 million. It also announced plans to offer the latest Gemini 2.0 model to Oppo phones in the coming months, with a focus on three core areas: productivity, creativity and imaging. Some of these innovations will be developed with chipset supplier MediaTek.
At the show, Oppo flaunted its latest flagship devices including its Find N5 foldable phone alongside the Reno13 series and Find X8 series. These are all impressive devices, but the company faces tough competition from Chinese rivals Honor and Xiaomi as they all seek to challenge established giants Apple and Samsung.
SK Telecom Goes All In on AI
SK Telecom is focusing almost exclusively on AI on its stand at MWC. It considers itself an AI company rather than a traditional telecom operator, and has several demonstrations relating to the technology, broadly centred on the themes of telecom services, network infrastructure and data centre solutions.
Among its leading showcases are: Aster, a personal AI agent tailored for the North American market that helps people to manage their schedules; Infrastructure Assistant, which converts internal operational knowledge into a database and uses a chat bot to provide operators with necessary information; and various liquid cooling methods to reduce data centre heat generation, part of the operator’s AI Infrastructure Superhighway strategy, announced in 2024.
Of course, the leading metric on which SK Telecom’s AI strategy will be judged is financial performance. In 2024, the company said that AI-related revenue grew 19% year-on-year. This good growth compared with an overall increase in revenue of less than 2%, suggesting that the AI focus is proving a successful new direction for the company.
Red Hat Offers Strategic Expansion in AI, Open RAN and Telecom Cloud
At the event, Red Hat reinforced its role in telecom transformation with a series of strategic partnerships in AI, Open RAN and telecom clouds. Major announcements included T-Mobile selecting Red Hat for its Common Telco Cloud, StarHub adopting OpenShift for hybrid cloud and SoftBank implementing OpenShift for network optimization. Fujitsu, KDDI, Orange, Rakuten, Turkcell and Safaricom have also deepened their collaborations with Red Hat.
Beyond direct partnerships, Red Hat continues to expand its ecosystem influence, working with Ericsson on Open RAN industrialization, A5G Networks on AI-powered automation, and Amdocs and Dell on AI-driven network operations. These moves position Red Hat as an enabler of telecom operators’ modernization efforts, providing them with an alternative to traditional, vertically integrated suppliers and offering flexibility and cost savings.
However, competition from hyperscalers and established telecom vendors is intense, and large-scale Open RAN adoption still faces economic and operational hurdles. Additionally, although AI integration in networks is promising, it must move beyond proof-of-concept applications.
Red Hat has an attractive solution for telecom operators seeking scalable, open and AI-driven offerings. However, its success will depend on its ability to drive real-world adoption at scale, proving that open, cloud-native networks can meet the reliability and performance demands of a rapidly evolving telecom landscape.
Nothing Boosts Portfolio with Two Mid-Range Smartphones
Edgy phone-maker Nothing, which prides itself on delivering smartphones and other connected products with distinctive designs, has unveiled two mid-range devices: the Phone (3a) and Phone (3a) Pro. These devices build on the success of the Phone (2a), which reached a new milestone for the company in 2024 by selling more than 1 million units.
Both products feature enhanced cameras with optical zoom for the first time. This aligns well with CCS Insight’s consumer research, which shows that a better camera is among the top reasons for purchasing a new phone. The two devices are also noteworthy for incorporating the Qualcomm Snapdragon 7s Gen 3 chipset, as the phone-maker previously transitioned from Qualcomm to MediaTek for its last generation of smartphones. The phones will receive software updates for six years from the date the device first became available.
Nothing is also making its first foray into AI-powered services with the introduction of Essential Space, an “AI-powered hub for notes, ideas, and inspirations”. Users can access it by pressing the dedicated Essential key on the side of their phones to capture and send content, record a voice note, or gain direct access to previously saved content.
With prices starting at £329 or €329 for Phone (3a) and £449, $459 or €459 for Phone (3a), the devices will be useful additions to Nothing’s line-up and will be central to its growth aspirations in India, where it is seeking to take share from rivals OnePlus and Xiaomi.
Geopolitical Shifts and the AI Race
The global race for technological dominance, with AI and semiconductors at the heart, has largely focused on the US and China. But a keynote session at MWC discussed how Europe is coming more into focus, not purely because of ambition, but as a necessity for economic security and geopolitical resilience.
The US is focusing on strengthening its domestic innovation to maintain leadership, while China has been pursuing self-sufficiency amid rising trade restrictions. This dynamic has highlighted the increasing tension between the two powers. The success of DeepSeek in developing its own AI models highlights the country’s growing capabilities. Yet, Europe’s role is becoming critical as it faces the imperative of investing in AI and related fields to avoid falling behind. For years, Europe has faced criticism for focusing on regulation rather than innovation.
European policymakers are now boosting investments in AI, quantum computing and emerging technologies. This is a strategic shift to secure its position in a rapidly evolving technological order. New AI start-ups and strategic investments over the coming years will be critical in determining whether Europe can move from being a regulatory powerhouse to a true innovation leader.
Orange Partners with Eutelsat as Satellite Broadband Market Heats Up
Orange is working with Eutelsat in Africa and the Middle East in an important step to improve connectivity coverage and security in rural areas. The agreement will offer consumer and business solutions, with speeds of up to 100 Mbps. This partnership is particularly important for Eutelsat, as competition continues to intensify in the fixed satellite broadband industry.
Starlink already has a strong presence in the consumer market, with download speeds between 25 and 220 Mbps. The company is looking to expand into the enterprise segment, but one competitor at MWC questioned its ability to do so, citing its consumer-focused design and reliance on a “best-case scenario” without guaranteed minimum speeds.
Orange’s partnership with Eutelsat may threaten constellations like SES, which has a partnership with Orange in the Central African Republic, although the deal between Orange and Eutelsat does not extend to that market.
This is a further investment by Orange in the Africa and Middle East region, which is becoming increasingly important to the operator. This latest decision is part of the operator’s longer-term strategy of democratizing connectivity services across its markets. By improving customer adoption and quality of service, Orange is hoping for strong returns on investment.
Another longer-term investment in the region focuses on developing large language model programming in African dialects. It highlighted this at MWC, raising an important point about AI inclusivity. Orange hopes the move will support its customer service and sales teams by enabling more people to communicate in their native language.
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