Google's Pixel 10 highlights a strategic shift as the company moves production of its Tensor processor from Samsung to TSMC. The decision was aimed at improving performance, yet benchmark scores show only modest gains over the 2024 version and still fall short of Apple's chip from 2024.
The Pixel 10's camera and other hardware specifications also do not stand out against comparable premium devices. Market observers note that Google's messaging focuses more on artificial intelligence applications than on hardware upgrades.
Hardware convergence narrows differentiation
In recent years, smartphone innovation has focused primarily on hardware, with faster processors, sharper cameras, larger batteries, and improved cooling. Software upgrades have been more modest. As flagship models have grown more similar, price gaps have narrowed, and only a few brands with strong recognition, such as Apple, have been able to sustain a premium.
For most other manufacturers, the playbook has been to stack more hardware features to deliver better value. That approach, however, has done little to change the overall user experience or create breakthrough applications, leaving many consumers with fewer reasons to upgrade their phones.
AI emerges as new differentiator
Artificial intelligence is now seen as the strongest opportunity to revive growth. Industry suppliers and ecosystem partners have stepped up investment to develop and integrate AI-driven functions. The introduction of agentic AI in 2024 gave the market a clearer direction, moving attention away from raw computing power toward efficient resource allocation and integrated functionality.
At the Pixel 10 launch, Google unveiled Magic Cue, an AI feature designed to anticipate user needs. Similar functions are expected to appear in other flagship models this year, signaling a shift from past marketing built around gaming or photography performance.
Gradual improvements expected
Suppliers expect AI-related changes to roll out gradually rather than in a single leap. User experience is likely to improve year over year, gradually shaping consumer perception and encouraging replacement purchases in the coming cycles.
While AI smartphones may not deliver an immediate revolution, the cumulative effect is expected to reset competition in the sector and provide a way for manufacturers to escape the diminishing returns of hardware-driven rivalry.
Article edited by Jerry Chen
