Underdelivery: AI gadgets have been a let-down but needn't be

Where are all the artificial intelligence (AI) consumer gadgets? Even a year ago, it seemed tech companies were working to incorporate the technology into every physical device, from coffee makers to vacuum cleaners, making 'AI-powered' hardware seem like it would soon be as ubiquitous as 'battery-powered' electronics.
Typically, tech conferences offer a glimmer of these futuristic toys. Not all of them end up hitting the market, but it's where we can dream a little about new pocket devices or household robots taking on a greater role in our lives.
So it was a little disappointing last week at Asia's biggest artificial intelligence conference, Taiwan's Computex, to find hardly any mention of consumer-facing tech. Most keynotes focused on enterprise applications of AI, such as agents or automated manufacturing. Walking around the exhibitors' hall, the only thing that caught my eye were wireless computer mice shaped like cats.
Also Read: AI as infrastructure: India must develop the right tech
A few things seem to have changed. For starters, there's the reality that hardware engineering presents an entirely different set of physical challenges compared to tinkering with AI software. And a global trade war also makes it a risky time to launch a new gadget when it's unclear if consumers are interested. Companies also may be starting to pick up on the fact that while Wall Street is awash with global hype on an AI boom, it isn't exactly a selling point on Main Street.
If anything, some of the executives speaking at the conference threw cold water on the next generations of these AI-first consumer products.
Asustek Computer co-chief executive officer Samson Hu told Bloomberg News that it will take another year or more for AI-powered PCs to go mainstream because the technology isn't quite there yet and macroeconomic uncertainty is impacting people's spending. There have been few compelling use cases for AI PCs so far, despite the mountain of promotion.
Meanwhile, the graveyard of AI hardware that was supposed to transform our lives is already growing. The Humane Ai Pin wearable device—launched last year to much hype about how it was going to replace the smartphone—got brutal reviews and turned out to be a fire hazard. The startup, run by two former Apple employees, stopped selling its Ai Pin earlier this year and was sold for parts.
The Rabbit R1 assistant [a stand-alone hand-held AI assistant device] is another cautionary tale of the false promises of these gadgets.
But that doesn't mean the future of AI consumer products is not on its way. OpenAI made a major announcement last week that it is working with legendary iPhone designer, Jony Ive, to launch something that takes AI into the physical realm for consumers. But even the might of OpenAI's technology and Ive's design prowess make whatever it is they have in mind a far-from-certain bet.
Also Read: Dave Lee: Apple must make peace with developers for AI success
There were perhaps some lessons for the future of such devices from the gathering in Taiwan. During his keynote speech, Qualcomm CEO Cristiano Amon said that AI computers are at a phase where they will require the work of outside developers to make them appeal to consumers.
The iPhone, for example, didn't take off right after it was launched. But it became essential to so many people because of the myriad apps developers built on top of it that we now use to hail taxis, order food or move around new cities. 'Really, the developer ecosystem is going to make this shift to AI PCs," Amon said. He's right, and the same is true beyond just AI computers.
For any revolutionary AI hardware device, especially a smartphone killer, the more that global developers lead the charge to meet peoples' needs and solve small everyday problems, the more likely they are to succeed.
In this economy, maybe that doesn't mean repackaging the same old gadgets with shiny new AI labels. It means iterating and perfecting real use cases that incorporate the buzzy technology into devices and make our lives easier. And this will inevitably be a collective effort.
Also Read: Can AI truly transform businesses? Yes, if adopted thoughtfully
AI is already transforming our world in small ways. I find asking ChatGPT to quickly translate phrases for me while on the go a lifesaver when I need to navigate a new country. But I hardly want to shell out money to carry around a new device simply to access ChatGPT.
The more the tech industry tries to slap AI onto everything and market it as a panacea for all our problems, the more I get a snake-oil salesman ick.
The future of AI hardware won't come in a magical new gadget, it will be built by tackling these tasks one-by-one and not all at once. ©Bloomberg
The author is a Bloomberg Opinion columnist covering Asia tech.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

India Today

4 hours ago

• India Today

How to use ChatGPT to create Images directly on WhatsApp

How to use ChatGPT to create Images directly on WhatsApp By Divya Bhati You can now generate AI images directly in your WhatsApp chat with ChatGPT. ChatGPT now creates images on WhatsApp Add 1-800-ChatGPT (+1-800-242-8478) to your contacts; this is the verified number by OpenAI. Save the official ChatGPT number Once the number is saved. Open WhatsApp, find the saved number, and send a simple 'Hi' to begin chatting. Start the conversation ChatGPT will ask you to verify your OpenAI account via a secure login—this connects your access to the image tools. Link your OpenAI account Once linked, you can type a prompt like 'a dragon flying over a neon city' and ChatGPT will create it using AI. Image prompt The images are generated through OpenAI's DALL·E model, known for high-quality, creative visuals. Powered by DALL·E You can also ask the chatbot to refine or modify generated images—ask it to add, remove, or tweak parts of the image. Edit Images with prompts No beta invite or special access needed—if you have an OpenAI account, you can use it now on WhatsApp. Available for everyone

Indian Express

6 hours ago

• Indian Express

From the Opinions Editor: India needs a well thought out trade strategy, but first it needs a China strategy

Dear Express Reader Over the past 11 years, the Narendra Modi government has taken several steps to shore up the economic momentum, and put the country on a higher growth trajectory. But, despite its efforts to ensure macroeconomic stability, revive private sector investments and boost household consumption, growth has been less than spectacular. Between 2014-15 and 2024-25, the economy grew at an average of just 6.2 per cent. Now, in its third term, whether pushed by Donald Trump's tariff war or the imperatives of growth, the government is making a determined effort to sew up trade agreements, hoping they will help embed the country into global supply chains, catalyse exports, and push up growth. A trade deal has been struck with the UK, and talks are proceeding with the US and the EU, with many of the issues that have previously held back these agreements being either resolved or sidestepped. These agreements will ensure greater market access and bring down tariffs, improving competitiveness of exports. But the question is: Will these trade deals be enough? Can they alone facilitate India's deep integration with global supply chains? Can the country emerge as a major production hub without integrating more closely with the supply chains that run through South and East Asia which form a vital part of global production systems? The case of Apple is instructive. The dramatic scaling up of the Apple ecosystem in the country — the company has recently said that iPhones sold in the US market will be mostly sourced from India — is a remarkable development. It is a consequence of both the government's production linked incentive scheme and the firm wanting to diversify its production bases away from China. Now, Apple provides a supplier list — a list that represents 98 per cent of the company's direct spend for materials, manufacturing and assembly of its products worldwide. This would include suppliers not only those involved in the production of the iPhone but also in other Apple products. As per this list, in 2023, 156 of the company's suppliers had manufacturing locations in China, 42 suppliers were located in Japan, 35 in Vietnam and 33 in South Korea, and 14 in India. Two years later the numbers would have changed slightly — as per a recent report there are now more than 20 component suppliers in India — but, they would still point towards the centrality of South and East Asia, and China in particular, to the global production system — a fact that cannot be ignored. If India wants to be a part of the production chain of other Apple products and grab a greater share of the value addition in the production process, it would need the smooth flow of components/materials into the country and more component manufacturers to be located here. And therein lies India's conundrum. What is India's China strategy? Should the country also be a part of RCEP (Regional Comprehensive Economic Partnership) and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)? In 2019, India chose not to be part of RCEP — the trade agreement that spans China, Japan, South Korea, Australia, New Zealand and the 10 ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam). The decision to not join was in large part attributed to concerns over China. But the trade relationship with China has only deepened since. And that is the reality, contrary to the desire of reducing the dependence on China. In 2018-19, before India withdrew from RCEP, its trade deficit with China stood at $53.5 billion. By 2024-25, it had surged to $99.2 billion, without RCEP. India, though, is not alone. Even as the US has tried to reduce its reliance on China, its deficit with the country, though it has declined in recent years, stood at a staggering $295 billion in 2024. And this does not account for rerouting of exports through other countries. But, it's not just about companies like Apple. The issue around rare earth minerals — used in a range of sectors such as smartphones, TVs, EV cars, solar panels and jet engines — underlines China's centrality to the global production system. This reality cannot be wished away. China accounts for 90 per cent of global processing of rare earths. With the country placing restrictions on its exports, EV manufacturers in India have reportedly sought the government's intervention in the matter. If these supplies continue to be restricted, India's EV push, and thus its efforts in shifting towards a cleaner vehicle fleet, risk being affected. And that won't be the only sector that is likely to be impacted. There are some reports which suggest that the government has raised the issue of export curbs on rare earth minerals and magnets with China. But it's not just India. Even the US has been affected. In fact, one of the key aspects of the US-China agreement that was announced by Donald Trump is the upfront export of full magnets, and any necessary rare earths by China. It is difficult to see companies move their production to India on the scale that is needed for the country to emerge as a manufacturing powerhouse unless they can be sure of stable trade relations, of supply chains working smoothly, of the seamless movement of components/personnel from other jurisdictions. India needs a well thought out trade strategy. The lack of clarity partly explains the sluggish pace of investments in the country by domestic as well as foreign firms — both of whom seem to be more inclined to invest in other jurisdictions presumably because the risk-return matrix is not as favourable in India. A clear strategy should give these firms the confidence needed to invest in the country. Take care, Ishan

India.com

8 hours ago

• India.com

Most expensive iPhone is made for just Rs 42000 but Apple sells it for Rs 1.32 lakh due to...

iPhone price in India New Delhi: American tech giant Apple sells its iPhones in various models at premium prices, but did you know that the actual manufacturing cost of these devices is significantly lower? Last year, the most expensive models were iPhone 16 series and iPhone 16 Pro Max. But have you ever wondered how much it actually costs to make this phone that sells for lakhs? In this article, we will tell you the cost of making these handsets. When the actual cost is so low, you might wonder why Apple charges more than double the price from customers. Today, we're going to tell you about the manufacturing cost of the iPhone 16 Pro Max. In fact, shortly after this phone was launched last year, a report was released revealing details about its manufacturing cost. Manufacturing Cost of iPhone 16 Pro Max The Bill of Materials (BOM) cost of the iPhone 16 Pro Max is USD 485 (approximately Rs 41,992 or Rs 42,000), according to market research firm TD Cowen. The report also stated that this is slightly higher than the cost of the iPhone 15 Pro Max, which was USD 453 (around ₹39,222). Why does a phone made for Rs 41,000 sell for over a lakh? It's important to note that the BOM only includes the cost of raw materials and assembly. The final retail price also factors in expenses like software development, marketing, and logistics, which significantly increase the overall cost. Currently, the 256GB variant of the iPhone 16 Pro Max is being sold on Flipkart for Rs 1,32,900. Check Key Details Here: The higher cost of the iPhone 16 Pro Max compared to the iPhone 15 Pro Max is due to the upgraded hardware components used in the handset. The display and rear camera system of the iPhone 16 Pro Max are the two most expensive parts, costing around ₹6,700. In comparison, these parts in the iPhone 15 Pro Max cost Rs 6,300 and Rs 5,900 respectively. The introduction of new LPDDR5X RAM technology has also added to the total cost With the RAM in the iPhone 16 Pro Max priced at Rs 1,400, whereas the older LPDDR5 RAM in the iPhone 15 Pro Max cost only Rs 1,000. The A18 Pro chipset and storage in the iPhone 16 Pro Max cost Rs 3,400 and Rs 1,900 respectively. Even after accounting for logistics and software development, Apple maintains a healthy gross margin and earns a significant profit on each model of the iPhone 16 Pro Max.