Cristiano Amon, chief executive of Qualcomm, has dismissed claims that new AI devices will replace the smartphone.
He told Yahoo Finance Invest that the phone was "not going anywhere", even as AI agents take on more tasks.
AI gadgets are competing for attention, including Meta's Muse device, OpenAI's hardware, which is still being tested, Snap's latest AI smart glasses and Tesla's humanoid robots.
Amon said AI agents would change how people use phones rather than replace them.
Some tasks will move to glasses, watches and small devices such as Muse, he said.
But the phone will remain "a very important processing hub" for content, sensors and the apps people already use.
A tough market
Amon admitted the phone market was in poor shape.
"The phone market is, it's bad, right? It's suppressed because of memory prices," he said.
He expects 2027 to be flat or worse after a weak 2026.
Global smartphone shipments fell 20% in the September quarter to a 14-year low.
Qualcomm feels the strain
Qualcomm's own figures show the pressure.
Revenue from smartphone chips fell 26% to $5.14 billion in its latest quarter.
The decline was caused by a shortage of memory chips across the industry and Apple's move to making its own modems, the chips that connect phones to mobile networks.
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