MWC 2025: From AI to smartphone penetration – 5 Things to know

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1 year ago

March 4, 2025

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Barcelona has once again become the epicentre of the global mobile industry as the Mobile World Congress (MWC) 2025 gets underway. With around 100,000 attendees expected, the event is buzzing with discussions on artificial intelligence (AI), trade tensions, and the future of the telecom sector. Here are five key takeaways from this year’s showcase:

1. AI Takes Centre Stage
AI continues to dominate conversations at MWC 2025, with manufacturers racing to integrate the technology into their latest devices. Chinese smartphone brand Honor, previously a subsidiary of Huawei, has unveiled its vision for an “AI device ecosystem”. Partnering with Google Cloud and Qualcomm, Honor aims to equip its new generation of smartphones with AI-powered “agents” capable of handling tasks such as scheduling meetings and making restaurant reservations. Similarly, Xiaomi has introduced a fresh range of smartphones with high-end cameras and AI-enhanced functionality.

Despite the enthusiasm, industry analysts warn of “AI fatigue” among consumers, who may struggle to see immediate, tangible benefits in their daily lives. However, many believe this year’s AI applications will be more concrete and user-friendly.

2. Trade Tensions Cloud the Show
The event kicks off against the backdrop of escalating trade tensions, particularly between China and the United States. Just a day after new American tariffs on Chinese goods came into effect, exhibitors from China find themselves at the centre of global economic disputes. An additional 10 per cent import tariff on top of an existing 10 per cent levy threatens to disrupt the supply chain and impact global smartphone prices.

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Industry leaders are concerned about the potential expansion of tariffs to other regions, including the European Union, which could further destabilise the market. Pekka Lundmark, CEO of Nokia, remarked that while a full-scale trade war is in no one’s interest, uncertainty over future policies continues to loom over the industry.

3. Calls for Regulatory Easing in Telecoms
European telecom firms have renewed their plea for regulatory reforms to allow greater consolidation within the industry. Speaking at the conference, Marc Murtra, chairman of Spanish telecom giant Telefónica, stressed the need for large European firms to merge and expand, arguing that scale is necessary to sustain long-term investment in infrastructure.

Meanwhile, Sunil Bharti Mittal, head of Indian telecom firm Airtel, has urged governments to lower taxes and make spectrum allocation more affordable, ensuring a healthier industry landscape that benefits both companies and consumers.

4. Smartphone Sales on the Rise
Despite a turbulent global economy, smartphone sales have rebounded following two years of contraction. According to market research firm IDC, the sector grew by 6.3 per cent in 2024, surpassing 1.2 billion units sold. Analysts suggest that renewed demand, coupled with technological advancements, could keep momentum strong in 2025.

Manufacturers remain optimistic about sustained growth, with IDC research director Nabila Popal attributing the resurgence to consumer resilience and the industry’s ability to innovate despite challenges.

5. The Battle for Tech Sovereignty
With ongoing geopolitical tensions, Europe is prioritising its push for “tech sovereignty”. Renate Nikolay, the European Commission’s deputy director-general for communications networks, emphasised the importance of ensuring Europe remains strategically independent in critical technology sectors. The continent is looking to develop its own infrastructure and reduce reliance on external markets, particularly in AI, semiconductor production, and telecommunications.

(With inputs from Reuters)

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