Overview
ZTE Corp (HK:0763) introduced the NaviX Ultra at the World Artificial Intelligence Conference in Shanghai, describing it as the world’s first agentic AI smartphone. The device is offered in black, pink, white and blue and activates ByteDance’s Doubao assistant through a voice command or a dedicated hardware button.
Agentic AI Functionality
Agentic smartphones are designed to execute user instructions autonomously across multiple applications. On‑device AI models handle frequent, low‑latency tasks, while cloud‑based systems process more complex requests, differentiating them from conventional phones that add isolated AI features.
Additional AI Smartphone Launches
StepFun released its own AI smartphone featuring a proprietary operating system and the Amoo assistant. Honor, formerly part of Huawei, announced plans to launch devices later in the year that will incorporate an AI agent developed in partnership with Alibaba Group Holding Ltd.
Market Context and Pressures
Chinese manufacturers are turning to AI as higher memory costs, inflation and weak consumer demand weigh on the global smartphone industry. Analysts project the Chinese smartphone market will record its steepest‑ever annual decline in 2026, with budget‑focused Chinese brands facing particular margin pressure.
Pricing, Production and Secondary Market
ZTE first presented a prototype under its Nubia brand in December, priced at 3,499 yuan (approximately $516). An initial production run of 30,000 units sold out quickly, and used models later traded at roughly twice the original price.
Industry Forecasts
IDC expects AI‑enabled smartphones to account for more than half of China’s smartphone market in 2026. ZTE indicated that detailed specifications for the NaviX Ultra will be released later in the year.
Apple Developments
Apple Inc has regained market ground in China since late 2025 and recently received regulatory approval to introduce Apple Intelligence, leveraging partnerships with both Alibaba and Baidu Inc.
Outlook
The combined rollout of agentic AI devices by ZTE, StepFun, Honor and other Chinese manufacturers signals a strategic shift toward autonomous mobile AI capabilities as the broader smartphone market contracts.