The analyst’s note also suggests that instead of apps, the smartphone could rely on AI agents to complete different tasks. Currently, Apple and Google control the app pipeline and the type of system access they get, restricting some of their functions. Kuo suggests that by creating its own smartphone and hardware stack, OpenAI would be able to use AI in all kinds of features without restrictions. With ChatGPT nearing a billion weekly users, a hardware product for daily use could also bode well for OpenAI’s ambition to reach more consumers.

This thinking is not restricted to OpenAI. Vibe coding app makers are predicting a future that doesn’t involve apps. Nothing CEO Carl Pei said at SXSW that apps will eventually go away.

Kuo believes that OpenAI’s smartphone would be designed to continuously understand users’ context. By offering the phone itself, the company could gain access to more data about users’ habits than an app on the phone could. He also said that the company will work on a mixture of small on-device models and cloud models to handle different types of requests and tasks.

The analyst said the smartphone’s specifications and its component suppliers are expected to be finalized by the year-end or by the first quarter of 2027, with mass production of the device expected to start in 2028.