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Hotspot #32: OpenAI’s gadget is worth getting excited about

Jony Ive and Sam Altman’s AI-first gadget, last chance for small phones and the price hikes are not smartphone’s main issue

By Ilia Temelkov

Published: May 23, 2025, 5:45 PM

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Hotspot #32: OpenAI’s gadget is worth getting excited about

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Jony Ive and OpenAI is the tech union we all needed

As a gadget nerd, this week brought me the most exciting teaser in ages. Sam Altman, CEO of OpenAI, announced that his company is acquiring the hardware startup led by Jony Ive, the legendary designer of the iPhone, Apple Watch, and the MacBook’s butterfly keyboard. They aim to create new types of AI-powered devices, one of which would be as important as our laptops and phones. In a joint video, Altman hinted he had used a prototype of this mysterious gadget, calling it the coolest piece of technology ever. I always advise people not to get hyped about unreleased and untested products. The recent flops of the Humane AI Pin and the Rabbit R1 reinforced that lesson. Yet, Ive and Altman are possibly the closest we now have to true visionaries in consumer tech. The former collaborated directly with Steve Jobs, and the latter is frequently compared to him. If there’s any team capable of creating an innovative, AI-first gadget worth getting excited about, it’s probably this one. So, let’s get hyped!

Last chance for small phones

Remember the iPhone 13 mini? It was the last truly small flagship smartphone, with a 5.4-inch display that fit comfortably in any hand. Its sales, however, were abysmal and it accounted for just 3% of the overall iPhone 13 series sales. Despite that, there’s a vocal group online lamenting the lack of small phones on the market and pleading for their return. Some argue the mini’s only meaningful issue was its battery life. This year, OnePlus released a 6.3” phone with a huge 6,260 mAh battery, and Vivo is expected to launch a 6.31” X200 FE with a 6,500 mAh battery. While these might be “compact” by modern standards, they’re still large phones. Nonetheless, if batteries this big can fit into 6.3” devices, a 5.4” phone should easily hold a much larger battery than the 2,500 mAh in the last iPhone mini. If solving the only major problem of truly small phones still doesn’t lead to significantly better sales, we’ll finally know they’re doomed. Perhaps more importantly, their fans will need to finally shut up about small phones.

Price hikes aren’t the problem

Everyone’s going crazy about the expected price hikes of smartphones this year, which I find weird for a few reasons. Firstly, manufacturers like Nothing are reshaping their portfolio. The company has announced that the Phone (3) will sell for about £800, a hike of about £200, but the new model will be a more premium type of smartphone. So, if you want a mid-range Nothing, you can check out the Phone (3a) and not spend the £800. Rumor has it that Apple is also planning a price hike for the iPhone 17 Series. That would be the first rise in the price of the Pro iPhone in eight years, despite all its upgrades. The $999 iPhone X, released in 2017, was comparable to today’s base iPhone, and adjusted for inflation, its price would be $1300 today. That’s why I’d argue we get much better value from modern phones today than ever before, especially from the upper mid-range models. If we should criticize smartphone companies, there are better topics - software support and repairability for one.