China Rebuilds Smartphones Around AI Agents; ZTE NaviX Sells Out in Hours
▼ Summary
– ZTE showcased the NaviX Ultra at WAIC, calling it the world’s first agentic AI smartphone, running ByteDance’s Doubao AI agent with voice or button activation.
– StepFun and Honor also unveiled similar agentic AI devices, with Honor’s agent co-developed with Alibaba set to ship later this year.
– These devices integrate an AI agent into the operating system to execute tasks autonomously across apps, rather than adding isolated AI features.
– Chinese smartphone makers are pursuing AI phones as an escape route after five consecutive quarters of shipment declines and pressure from thin margins.
– The launches deepen competition with Apple, which received approval to roll out Apple Intelligence in China through partnerships with Alibaba and Baidu.
At the World AI Conference in Shanghai this week, ZTE unveiled the NaviX Ultra under its Nubia brand, billing it as the world’s first agentic AI smartphone. Powered by ByteDance’s Doubao AI agent, the device can be activated through voice commands or a dedicated button. Available in four colors, it was first prototyped in December with a starting price of 3,499 yuan ($516). The initial batch of 30,000 units sold out within hours, and prices on the secondary market have already doubled.
ZTE is not the only player pushing this new category. StepFun demonstrated a device running its own proprietary operating system, equipped with a built-in agent named Amoo. Meanwhile, Honor, the Huawei spin-off, is showcasing an AI agent developed in partnership with Alibaba, set to debut on new models later this year. All three companies share a common vision: embed an agentic layer directly into the operating system, enabling AI to autonomously execute tasks across multiple apps. This approach contrasts sharply with simply layering isolated AI features onto existing interfaces. “Many so-called AI phones on the market simply stack AI functions on top of an existing system,” said Nubia chief Ni Fei. “That actually makes it more cumbersome for users.”
The timing of these launches is strategic. China’s smartphone shipments have declined for five consecutive quarters, driven by rising component costs from the memory crisis and weakening consumer demand. IDC projects that the global smartphone market will experience its steepest annual drop on record in 2026. Chinese manufacturers, many of which rely on low-margin budget devices, are feeling the pressure most acutely. AI-powered smartphones represent a potential lifeline. According to IDC analyst Arthur Guo, more than half of China’s smartphone market could be dominated by AI devices by the end of this year.
These developments also intensify the rivalry with Apple, which recently received Beijing’s approval to roll out Apple Intelligence in China through collaborations with Alibaba and Baidu. “In terms of AI smart devices, we are ahead of Apple,” Ni posted on Weibo in June. The AI revolution that is squeezing the cheap smartphone market is simultaneously creating a compelling case for a new kind of device. Whether an AI agent that can book flights and edit photos will convince consumers to upgrade remains the central question , one the market will answer before the year ends.
(Source: The Next Web)
