China rebuilds smartphones around AI agents as ZTE's NaviX Ultra sells out in hours

China is rebuilding the smartphone around AI agents. ZTE's NaviX sold out in hours.

ZTE showed the NaviX Ultra at WAIC, calling it the first agentic AI smartphone. It runs ByteDance's Doubao agent. StepFun and Honor showed similar devices. ZTE showcased the NaviX Ultra at the World AI Conference in Shanghai this week, calling it the world's first agentic AI smartphone. The device, built under ZTE's Nubia brand, runs ByteDance's Doubao AI agent and can be activated by voice or a dedicated button. It comes in four colours and was prototyped in December at 3,499 yuan ($516). The initial 30,000 units sold out quickly and doubled in price on the used market. ZTE was not alone. StepFun unveiled a device running a proprietary operating system with a built-in agent called Amoo. Honor, the smartphone maker spun off from Huawei, is showcasing an AI agent co-developed with Alibaba that will ship on new devices later this year. The idea is the same across all three: build an agentic layer into the operating system that lets AI execute tasks autonomously across apps, rather than bolting isolated AI features onto an existing interface. "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 is not coincidental. China's smartphone shipments have fallen for five consecutive quarters as the memory crisis pushed component costs up and consumer demand down. IDC expects the global smartphone market to post its steepest annual decline on record in 2026. Chinese manufacturers, many of which sell budget devices with thin margins, are being squeezed hardest. AI phones are their escape route. IDC's Arthur Guo said more than half of China's smartphone market could be dominated by AI devices this year. The launches also deepen the competition with Apple, which just received Beijing's approval to roll out Apple Intelligence in China through partnerships with Alibaba and Baidu. "In terms of AI smart devices, we are ahead of Apple," Ni said on Weibo in June. The AI boom that is killing the cheap smartphone is simultaneously creating the argument for a new kind of phone. Whether an agent that books flights and edits photos is enough to make people replace a device they already own is the question the market will answer by the end of the year.

Pocket-size AI: Powerful phones star at China show

Shanghai (AFP) - Tech firms are racing to roll out advanced smartphones that use artificial intelligence to do everything from ordering food to composing messages upon a simple voice command. Wide adoption of phones running on so-called AI agents would be a revolution, but would also take control away from major apps, which aren't always happy about it. At least three firm were showcasing so-called agentic phones at the World Artificial Intelligence Conference in Shanghai this weekend -- heralding what may be to come. Smartphone maker Nubia unveiled its NaviX Ultra, a phone powered by Doubao, China's massively popular AI chatbot tool run by TikTok creator ByteDance. "A new era of AI agent smartphones begins," Nubia said, sharing images of the handsets online. A limited run of a prototype dubbed the "Doubao Phone" sold out fast in December. Initially, the prototype could follow simple voice commands to execute tasks across apps, including ordering food and comparing shopping prices. However, days after it was released, tech giants including Alibaba, Tencent and JD.com restricted the built-in assistant's access to their platforms. The move effectively disabled the phone's AI agent, so ByteDance turned off the powerful tool in certain circumstances, including when payments were involved. 'Lose control' Gaining broad access to apps owned by other companies is a sticking point for AI agent devices, said Kiranjeet Kaur, associate research director at US market intelligence firm IDC. Platforms want to keep direct contact with their users, otherwise "they lose control to another party", she added. "Agenting is everyone's dream, but we haven't reached there yet," as the performance of AI agent tools is still often patchy, Kaur said. According to Chinese tech media, the NaviX Ultra does not attempt to force its way into apps, but rather seeks to collaborate with them. The first-generation Doubao phone had been hobbled when major apps blocked unauthorised access. AFP has contacted Nubia for comment. Another manufacturer, Honor, showcased an AI system for its "Robot Phone", whose interactive camera flips up on a small robotic arm. The company says its "companion-centric" device can interpret human gestures and bop to musical rhythms, as well as take selfies and steady videos. An agent using several AI models, some co-developed with Alibaba, will be embedded in the robot phone when it goes on sale later this year, Honor told AFP. 'No clear winner' Shanghai-based AI startup StepFun also unveiled an "AI agent-native smartphone", the STEPX Neo, ahead of the World Artificial Intelligence Conference. StepFun's chairman Yin Qi said "deep partnerships" had been established with several major Chinese platforms, including Alipay and ride-hailing giant Didi, according to a sponsored article in state news agency Xinhua. "Leveraging these services, the smartphone can provide one-stop support for travel bookings, everyday purchases, local services, office productivity and video editing," it said. Outside China, big tech companies such as Google are busy infusing smartphones with increasingly advanced AI features such as the ability to book appointments. US startup Brain Technologies launched an agentic "Natural AI Phone" which went on sale in Japan in April in partnership with mobile giant SoftBank Corp. At a demonstration given to AFP in April, Brain Technologies' phone -- which connects with a handful of apps including social network LINE -- messaged a contact to apologise for being late on just an audio command, although it also often failed to carry out requests. "There is no clear winner in this race yet, which is why it is currently quite a hot topic," said Marc Einstein of Counterpoint Research. But in five or 10 years time, we won't be using apps on our phones "like we do today", he predicted. "This will fundamentally change the digital economy and disrupt business models."

Pocket-size AI: Powerful phones star at China show

Tech firms are developing AI agent smartphones that could revolutionize mobile use. These advanced phones aim to perform tasks using voice commands and AI. Major app companies are restricting access, which hinders the AI agent's functionality. Companies like Nubia, Honor, and StepFun are showcasing these new devices. Experts predict a fundamental change in digital economies and business models. Tech firms are racing to roll out advanced smartphones that use artificial intelligence to do everything from ordering food to composing messages upon a simple voice command. Wide adoption of phones running on so-called AI agents would be a revolution, but would also take control away from major apps, which aren't always happy about it. At least three firm were showcasing so-called agentic phones at the World Artificial Intelligence Conference in Shanghai this weekend -- heralding what may be to come. Smartphone maker Nubia unveiled its NaviX Ultra, a phone powered by Doubao, China's massively popular AI chatbot tool run by TikTok creator ByteDance. "A new era of AI agent smartphones begins," Nubia said, sharing images of the handsets online. A limited run of a prototype dubbed the "Doubao Phone" sold out fast in December. Initially, the prototype could follow simple voice commands to execute tasks across apps, including ordering food and comparing shopping prices. However, days after it was released, tech giants including Alibaba, Tencent and JD.com restricted the built-in assistant's access to their platforms. The move effectively disabled the phone's AI agent, so ByteDance turned off the powerful tool in certain circumstances, including when payments were involved. - 'Lose control' - Gaining broad access to apps owned by other companies is a sticking point for AI agent devices, said Kiranjeet Kaur, associate research director at US market intelligence firm IDC. Platforms want to keep direct contact with their users, otherwise "they lose control to another party", she added. "Agenting is everyone's dream, but we haven't reached there yet," as the performance of AI agent tools is still often patchy, Kaur said. According to Chinese tech media, the NaviX Ultra does not attempt to force its way into apps, but rather seeks to collaborate with them. The first-generation Doubao phone had been hobbled when major apps blocked unauthorised access. AFP has contacted Nubia for comment. Another manufacturer, Honor, showcased an AI system for its "Robot Phone", whose interactive camera flips up on a small robotic arm. The company says its "companion-centric" device can interpret human gestures and bop to musical rhythms, as well as take selfies and steady videos. An agent using several AI models, some co-developed with Alibaba, will be embedded in the robot phone when it goes on sale later this year, Honor told AFP. - 'No clear winner' - Shanghai-based AI startup StepFun also unveiled an "AI agent-native smartphone", the STEPX Neo, ahead of the World Artificial Intelligence Conference. StepFun's chairman Yin Qi said "deep partnerships" had been established with several major Chinese platforms, including Alipay and ride-hailing giant Didi, according to a sponsored article in state news agency Xinhua. "Leveraging these services, the smartphone can provide one-stop support for travel bookings, everyday purchases, local services, office productivity and video editing," it said. Outside China, big tech companies such as Google are busy infusing smartphones with increasingly advanced AI features such as the ability to book appointments. US startup Brain Technologies launched an agentic "Natural AI Phone" which went on sale in Japan in April in partnership with mobile giant SoftBank Corp. At a demonstration given to AFP in April, Brain Technologies' phone -- which connects with a handful of apps including social network LINE -- messaged a contact to apologise for being late on just an audio command, although it also often failed to carry out requests. "There is no clear winner in this race yet, which is why it is currently quite a hot topic," said Marc Einstein of Counterpoint Research. But in five or 10 years time, we won't be using apps on our phones "like we do today", he predicted. "This will fundamentally change the digital economy and disrupt business models."

Chinese Smartphone Companies Rework Devices Around AI | PYMNTS.com

That's according to a report Sunday (July 19) by Bloomberg News, which cited the example of ZTE's new line of smartphones with built-in AI services, including the NaviX Ultra, which it deemed the world's first agentic AI smartphone. That followed another recent unveiling by StepFun, which has rolled out a device featuring a proprietary operating system and built-in agent Amoo. Honor, the smartphone company spun off from Huawei, is also showcasing an AI agent, drawing on models co-developed with Alibaba, the Bloomberg report added. The report noted that these launches highlight a larger effort to revamp the smartphone space amid increasing memory costs, inflation and the rise of AI. In 2025, OpenAI paid $6.5 billion to acquire a design consultancy run by former Apple hardware chief Jony Ive, launching an effort to develop an AI device. At the same time, the global smartphone market is bracing for its sharpest decline on record this year, the report added. Chinese smartphone makers have been hit especially hard, as many sell budget phones with lower margins and pricing power, Bloomberg added. According to findings released last week by Counterpoint Research, global smartphone sales fell to their lowest second-quarter level in 13 years as manufacturers passed the increasing cost of memory components onto shoppers. Total shipments declined by 11% year over year in the second quarter to reach the lowest level for that three-month period since 2013. Apple, the only major smartphone maker that didn't raise prices during the quarter, saw shipments tick up 3% amid the ongoing strength of its iPhone 17 series. "The global memory crisis has now overtaken every other factor as the single biggest drag on the smartphone industry," Counterpoint Research Senior Analyst Shilpi Jain said in a news release. "What started as a components issue last year is now a full-blown demand issue." Meanwhile, PYMNTS wrote last week about the challenges of introducing AI-powered hardware devices. That report cited the example of Humane, which launched the AI Pin in April 2024 at $699 and discontinued it entirely less than a year later, with returns surpassing purchases between May and August 2024. Rabbit R1 sold 100,000 units following its unveiling at CES 2024 and faced extensive criticism after the finished product failed to match many of its demonstrations. "Both products highlighted how difficult it is to convince consumers to adopt a new AI hardware category," PYMNTS wrote. For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.

China smartphone makers turn to agentic AI as device sales slow By Investing.com

Investing.com -- ZTE Corp. (HK:0763) unveiled a range of smartphones with integrated artificial intelligence services, joining Chinese manufacturers seeking to make agentic AI a central part of mobile operating systems, Bloomberg reported. The state-backed telecommunications company demonstrated the NaviX Ultra at the World Artificial Intelligence Conference in Shanghai, describing it as the world's first agentic AI smartphone. Available in black, pink, white and blue, the device launches ByteDance's Doubao assistant through a voice command or dedicated button. Unlike conventional phones that add isolated AI features, agentic devices are designed to execute instructions autonomously across multiple applications. On-device models handle frequent tasks requiring low latency, with cloud-based systems processing more complex requests. StepFun also introduced an AI smartphone this week featuring its proprietary operating system and Amoo assistant. Honor, formerly owned by Huawei, plans to launch devices later this year using an agent developed with Alibaba Group Holding Ltd. (NYSE:BABA). Chinese manufacturers are turning to AI as higher memory costs, inflation and weak consumer demand weigh on the global smartphone industry. The market is projected to record its steepest-ever annual decline in 2026, with budget-focused Chinese brands facing particular pressure from thinner margins. Apple Inc. (NASDAQ:AAPL) has regained ground in China since late 2025 and recently received regulatory approval to introduce Apple Intelligence through partnerships with Alibaba and Baidu Inc. (NASDAQ:BIDU). ZTE first presented a prototype under its Nubia brand in December, priced at 3,499 yuan ($516). The initial production run of 30,000 units sold out quickly, with used models later trading at about twice the original price. Nubia executives demonstrated functions including real-time photo editing, map creation and travel planning at the Shanghai conference but did not disclose the latest device's technical specifications. IDC expects AI smartphones to account for more than half of China's market in 2026. ZTE plans to release further specifications for the NaviX Ultra later this year.