This year marks the 10th anniversary of the iPhone, a device that revolutionized the mobile internet and sparked a global frenzy among Chinese consumers. Just three years ago, China had nearly 100 smartphone manufacturers, but according to Counterpoint’s research report on the Chinese smartphone market in the third quarter of this year, the top five brands now account for 82.5% of the total market share. This dramatic shift shows that the industry is undergoing a major consolidation.
What does this mean? It means that traditional giants like Lenovo and ZTE, as well as smaller players such as HuaWei, Meizu, 360, and LeTV, have all fallen into the remaining 18% niche market. The shake-up isn’t just starting—it’s almost complete. At the recent World Internet Conference in Wuzhen, only two domestic mobile game companies were present: Xiao Jun (Lei Jun) and Yu Chengdong (Huawei). Last year, Ding Lei was there, but this year, Zhao Ming, the CEO of the "Glory" series, was absent because he was launching the new AI-powered phone in London.
It wasn’t that Zhao Ming wasn’t invited; rather, his company chose to unveil its latest product in London during the conference. If feature phones were tools for communication and smartphones were computing devices, then AI phones are set to become true personal assistants. Twenty years ago, handheld computers didn’t fulfill their promise, but with AI technology, they might finally do so.
In 2007, Apple launched the first smartphone, and in 2017, it marked the beginning of the AI phone era. Over the past decade, the mobile phone industry has reached a critical turning point. The smartphone ceiling is now being tested.
In 2007, Steve Jobs took the stage in San Francisco and introduced a revolutionary product that mocked Nokia's dominance. The iPhone wasn't just about design or performance; it transformed the mobile phone from a communication tool into a computing device, ushering in the mobile internet era.
In the feature phone era, phones were just for calling. In the smartphone era, people use them for travel, payments, study, work, and daily life. The past decade has completely changed how we live, but the core purpose of smartphones hasn't evolved much—they remain tools for productivity.
From ultra-thin designs to fingerprint sensors, dual cameras, fast charging, and full-screen displays, manufacturers have chased every innovation, but these changes have mainly focused on making phones smoother and more refined. However, the fundamental role of the phone as a production tool hasn't changed.
Since 2016, the smartphone market has faced a plateau, leading to industry stagnation. Micro-innovations no longer satisfy users, and the entire industry is hitting a ceiling. Smartphones have been tinkering internally for a decade without any external breakthroughs.
With market saturation and rising supply chain costs due to intense competition, product homogenization has become a big issue. A new revolution in the mobile phone industry is inevitable.
So far, the mobile phone industry has seen three major revolutions. The first began in 1983 when Motorola released the first civilian mobile phone, the DynaTAC 8000X. Though expensive and limited in features, it freed people from landlines and started the mobile revolution.
The second revolution came with digital networks and better hardware, transforming phones into multi-functional devices. Companies like Nokia, Sony, and Samsung led the way, making phones closer to computers.
Then came the iPhone in 2007, marking the third revolution by turning phones into portable computers and opening the door to the mobile internet era.
Now, with AI phones, the next wave is coming. Apple, Huawei, and Glory are exploring new technologies to drive the AI phone trend. In 2017, Apple launched HomePod and the iPhone X with an AI chip, while Huawei released the Kirin 970 AI chip and the Mate 10 series.
The key features of AI phones include human-computer integration, simplified operations, and powerful computing through NPU chips. Only a few companies, like Apple and Huawei, have AI chips, making them leaders in this space.
Glory's V10, with its AI capabilities, is one of the most important AI phones of 2017. Its success highlights the growing importance of AI in the mobile industry. As Zhao Ming said, AI is no longer just a marketing gimmick—it's a fundamental part of the future.
With continuous focus and innovation, companies like Glory are shaping the future of mobile technology. The time difference between early adopters and latecomers can determine who leads the market. In the age of artificial intelligence, those without AI capabilities may be left behind.
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