News Summary

• Analyst Ming-Chi Kuo claims ChatGPT maker OpenAI is working on a phone.
• Kuo says OpenAI’s phone is “set to redefine smartphones” with a new handset.
• Apple has so far struggled to bring the iPhone up to speed with the pace of AI development.
• But I don’t think he’ll be worried about the threat of the “ChatGPTphone.” OpenAI will be going from a standing start in a mature market stuffed with contenders that have, as mentioned above, been doing this for almost two decades.
• The iPhone benefits from seamless compatibility with the AirPods, Apple Watch, Mac, and Vision Pro, and also benefits from the appeal of Apple Music, iMessage, Apple Pay, the App Store, and so much more.
• OpenAI could cut those off (along with the Android app) to give itself a USP, but that would likely hurt OpenAI more than its smartphone competitors.