Can Elliptic Labs’ AI sensor platform replace hardware in future smartphones?

In July 2025, Norwegian artificial intelligence software provider Elliptic Laboratories ASA (OSE: ELABS) marked a significant milestone in its mobile technology journey by deploying its AI Virtual Smart Sensor Platform™ across three new smartphone models. The Oslo-listed firm’s latest integrations include two devices in the HONOR X70 Series and the vivo X200FE, reinforcing its growing role in AI-powered proximity sensing technology for mobile devices.

With this latest rollout, Elliptic Labs has achieved 39 smartphone launches year-to-date in 2025 alone and has now exceeded 200 smartphone model deployments since inception—a benchmark that underlines the scalability of its software-only virtual sensor platform.

What is the significance of Elliptic Labs’ July 2025 smartphone launches for its AI sensor business?

The July launches of HONOR and vivo smartphones equipped with Elliptic Labs’ platform reflect growing OEM confidence in replacing traditional hardware-based sensors with virtual alternatives. These partnerships not only extend Elliptic Labs’ geographic reach into high-volume Asian markets but also validate its broader strategy of platform-wide integration across multiple device families.

According to a statement from CEO Laila Danielsen, the company’s AI Virtual Smart Sensor Platform has now been launched on more than 200 smartphone models globally. The July milestone—spanning three new devices—adds to its growing track record of embedded AI software wins across Asia’s mid- and premium-tier smartphone market.

Institutional sentiment around Elliptic Labs has remained positive, with analysts pointing to its increasing attach rate and growing total addressable market (TAM) as smartphone OEMs continue to seek cost-effective, low-power sensing solutions amid tightening margins.

How does the AI Virtual Proximity Sensor differentiate itself from traditional hardware-based alternatives?

At the heart of Elliptic Labs’ product strategy is the AI Virtual Proximity Sensor, a core offering under the broader AI Virtual Smart Sensor Platform umbrella. Unlike conventional infrared or time-of-flight hardware sensors, Elliptic’s solution is entirely software-based, eliminating the need for discrete sensing components on the device.

This sensor enables smartphones to detect when a user brings the device close to their ear during a call, automatically turning off the screen to prevent accidental touch inputs and preserve battery life. While such functionality is common across all smartphones, Elliptic’s approach avoids component-level supply chain risks and reduces bill-of-materials costs for OEMs.

The product is marketed under the brand name INNER BEAUTY™, highlighting the firm’s emphasis on invisible yet impactful enhancements to the mobile user experience.

Why is software-based sensing gaining traction among global smartphone manufacturers?

The proliferation of virtual sensing solutions like those offered by Elliptic Labs aligns with a broader industry shift toward software-defined hardware. With tight component supply chains and cost pressures across mid-range smartphones, manufacturers are looking for ways to streamline design, reduce part dependencies, and increase design flexibility.

Virtual sensors, which rely on a mix of machine learning models, system telemetry, and signal processing algorithms, offer an increasingly compelling alternative. For smartphone makers, the trade-off includes lower hardware costs, fewer sourcing headaches, and easier integration across device variants and form factors.

In this context, Elliptic Labs’ integration with multiple devices from vivo and HONOR—two of China’s top-tier mobile OEMs—signals growing industry validation for AI-powered virtual sensing. This approach also complements sustainability goals, as software sensors reduce component count and potentially extend device lifespan.

What is Elliptic Labs’ broader vision for its AI Virtual Smart Sensor Platform?

Elliptic Labs’ strategy goes beyond proximity sensing. The AI Virtual Smart Sensor Platform™ is designed to serve as a unified layer of contextual intelligence, transforming how devices respond to environmental cues and user behavior.

The platform leverages deep neural networks to interpret real-time data from system telemetry and external inputs, extending well beyond traditional sensors. As noted in its company literature, the platform can work across all devices, operating systems, and applications, giving it wide applicability in consumer electronics, automotive interfaces, and industrial IoT environments.

By linking telemetry with cloud-based large language models (LLMs), Elliptic Labs envisions its platform powering richer, more personalized user experiences. This direction aligns with broader market trends in edge AI, where on-device intelligence is becoming increasingly central to product differentiation.

How are investors evaluating Elliptic Labs’ performance and future scalability?

Investor sentiment toward Elliptic Labs has remained cautiously optimistic. As a publicly listed firm on the Oslo Stock Exchange, Elliptic is subject to consistent performance scrutiny. While its AI sensor solutions are gaining traction, scaling revenue in line with shipment volumes and maintaining recurring licensing income remain key investor focus areas.

Analysts note that Elliptic’s software-centric model provides high gross margins, but future valuation will depend on deeper penetration into flagship devices and expansion beyond proximity sensing into more advanced contextual applications like gesture control, presence detection, and environmental sensing.

The crossing of the 200-model deployment threshold is being viewed as a milestone of credibility in the highly competitive sensor space. However, institutional stakeholders will likely track the firm’s ability to broaden OEM partnerships, extend into automotive and PC verticals, and sustain its IP lead in virtual sensor technologies.

What lies ahead for Elliptic Labs in terms of strategic growth and industry relevance?

Looking forward, Elliptic Labs is poised to benefit from multiple macro trends: the rise of context-aware devices, the push for lower-cost mobile designs, and the convergence of AI with embedded systems. As smartphones, laptops, and even smart home devices shift toward touchless, intelligent interfaces, the addressable market for software-based sensing platforms could expand significantly.

Further device launches from global OEMs, particularly in segments outside China, would reinforce Elliptic’s positioning. Additionally, licensing deals with PC or automotive makers could provide a second revenue leg beyond smartphones.

Geographically, Elliptic already maintains operations in Norway, the U.S., China, South Korea, Taiwan, and Japan. Its development work remains centered in Norway, where its intellectual property is solely owned and managed. With device partners in Asia and North America, the company appears well-positioned to scale across markets.

Whether the firm can successfully convert its technological edge into broader platform dominance will depend on continued innovation, OEM trust, and responsiveness to evolving user expectations.