Telecommunications company Telekom is venturing into fresh territory, leaving behind rivals such as Vodafone, O2, and others in its path.
In August 2025, Deutsche Telekom launched its new AI-based smartphone, marking a significant step in the German telecommunications company's venture into modern technologies. The device, priced at €149, aims to compete with market giants like Samsung and Apple, offering an innovative and user-friendly AI-centric experience [2][3][5].
The smartphone integrates an AI assistant, powered by Perplexity AI, designed to enable app-free interactions through voice or text. It supports real-time translation, trip planning, tutoring, email drafting, content summarization, and AI-enhanced camera functions [2][3][5]. Unlike its competitors, Deutsche Telekom's AI smartphone eliminates visible apps initially, focusing instead on a seamless AI interface activated via a magenta button or power key [3][5].
Compared to premium devices from Samsung and Apple, Deutsche Telekom’s AI phone offers a more affordable alternative. The AI-based virtual assistant from US company Perplexity provides immediate answers or suggestions for tasks such as translations or shopping [1]. However, Deutsche Telekom’s brand is less established as a smartphone manufacturer, raising questions about its competitiveness against these well-known global brands [3].
The AI phone is based on the existing T-Phone, previously sold by Deutsche Telekom, and is intended to showcase the company's innovative capabilities [6]. The AI assistant, while promising, has shown weaknesses in voice recognition, as revealed in March [7]. Despite this, the smartphone is designed to simplify daily life for its users.
Consumer adoption is currently growing but mixed; awareness of AI chatbots and AI-driven phones remains relatively low among the general public in Germany, with only 15% having used AI agents according to a July 2025 YouGov survey [3]. Deutsche Telekom is also expanding AI accessibility through its Magenta AI service integrated into its existing MeinMagenta app, targeting users who do not buy the new devices to engage with AI tools [2].
CEO Claudia Nemat considers AI as "the big technology of our time." The new smartphone, part of Deutsche Telekom's venture into modern technologies, is intended to be a competitor in the market against companies like Samsung and Apple [4]. Its success will depend on growing AI familiarity and convincing consumers to embrace a novel smartphone paradigm within a competitive market [2][3][4][5].
References:
- Deutsche Telekom Launches AI-Powered Smartphone
- Deutsche Telekom's AI-Driven Smartphone: A New Affordable Option
- Deutsche Telekom's AI-Powered Smartphone: A New Player in the Market
- Deutsche Telekom CEO on AI: "The Big Technology of Our Time"
- Deutsche Telekom's AI-Powered Smartphone: Features and Functionality
- Deutsche Telekom's AI-Powered Smartphone: A Look Back at the T-Phone
- Deutsche Telekom's AI-Powered Smartphone: Voice Recognition Issues
The AI-based smartphone from Deutsche Telekom, powered by Perplexity AI, offers an AI-centric experience with features such as real-time translation, trip planning, tutoring, email drafting, content summarization, and AI-enhanced camera functions. Unlike its competitors, this phone eliminates visible apps initially, focusing on a seamless AI interface.
CEO Claudia Nemat views artificial-intelligence as "the big technology of our time," positioning the AI smartphone as a competitor in the market against companies like Samsung and Apple. Consumer adoption of this technology remains mixed, with only 15% of the general public in Germany having used AI agents according to a July 2025 YouGov survey.
