At the World AI Conference in Shanghai, ZTE unveiled the NaviX Ultra, branded as the world’s first agentic AI smartphone. This innovation, powered by ByteDance’s Doubao AI agent, highlights a new approach where AI executes tasks autonomously across the device rather than functioning as isolated features.
- ZTE’s NaviX Ultra sold out 30,000 units within hours after debut.
- AI agents operate system-wide autonomously, not as add-on features.
- AI smartphones could dominate over half of China’s market in 2026.
What happened
ZTE introduced the NaviX Ultra smartphone at the World AI Conference in Shanghai, presenting it as the first agentic AI phone. It incorporates ByteDance’s Doubao AI agent, enabling users to engage AI via voice or a dedicated button. The device is available in four colors and launched at a price around $516.
This initial release of 30,000 units sold out within hours, with secondary market prices doubling. Other Chinese brands like StepFun and Honor are also launching phones featuring integrated AI agents designed to operate autonomously over the entire operating system rather than through isolated apps.
Why it matters
China’s smartphone shipments have declined for five straight quarters due to rising component costs and weakened consumer demand, squeezing manufacturers—especially those selling budget devices with thin margins. Introducing AI-driven phones represents a strategic pivot to reinvigorate the market and differentiate products.
Industry analysts predict AI-enabled smartphones could account for more than half of China’s market by the end of 2026, intensifying competition. This wave also challenges Apple’s recent efforts to launch AI services in China through local partnerships, with Chinese firms claiming leadership in AI device integration.
What to watch next
The critical test will be whether consumers adopt AI-agentic phones in large numbers despite already owning functional devices. Manufacturers will need to demonstrate meaningful improvements in convenience and functionality driven by autonomous AI agents embedded in the OS.
The evolution of AI smartphone ecosystems, including new device launches from Honor and StepFun and Apple's AI service rollout in China, will shape market dynamics. Observers will track pricing trends, consumer feedback, and sales data to gauge if AI integration can reverse the smartphone market decline.