Deutsche Telekom’s $170 T Phone 3 offers AI tools, an 18-month Perplexity Pro subscription, and a €1 bundle deal shaking up the market

Deutsche Telekom T Phone 3 launches at $170 with a €1 bundle offer in Germany
Perplexity Pro subscription worth $360 is included free for 18 months with purchase
Picsart Pro image editing tools are bundled for three months at no extra cost

Deutsche Telekom has launched the T Phone 3, a new AI-focused smartphone priced at $170, positioning it as an affordable entry point into integrated AI services.

A bundle offer reduces the cost to €1 when purchased with a tariff, and the package also includes an 18-month subscription to Perplexity Pro, valued at $360, along with a three-month Picsart Pro license.

The company has confirmed a “Pro” version of the AI phone will be released later this year, although exact details aren't known.

AI integration and activation methods

The smartphone centers on Perplexity Assistant, providing AI tools for real-time translation, trip planning, tutoring, email drafting, content summarization, and image editing.

Users can activate these functions either by pressing a dedicated magenta button or by double-tapping the power key.

Both voice and text input are supported, aiming to streamline interaction and reduce dependency on conventional app-based workflows.

This approach positions the device as a business smartphone option for users who prioritize efficiency in communication and task management.

The T Phone 3 features improved charging and AI-assisted camera functions compared to its predecessor.

Although not marketed strictly as a rugged smartphone, Deutsche Telekom points to improved durability and the use of recycled materials in its construction.

The device’s longevity in more demanding conditions remains to be seen, although the company emphasizes sustainability in design and component sourcing.

Alongside the smartphone, Deutsche Telekom also launched the T Tablet 2 in Germany, priced from €199 and includes the same 18-month Perplexity Pro subscription and Picsart Pro license.

Like the phone, it supports the dedicated AI activation controls and upgraded performance features, although the smartphone remains the primary focus of the company’s AI device push.

The inclusion of an 18-month subscription is central to the value proposition, yet the long-term appeal will depend on how many users continue paying once the free period ends.

With forecasts predicting that AI smartphones could dominate shipments by 2028, the challenge for Deutsche Telekom will be to maintain relevance when the initial incentives expire.