This year marks the tenth anniversary of the iPhone, a device that revolutionized mobile technology and ushered in the era of mobile internet. The iPhone not only transformed how people communicate but also sparked a global frenzy among Chinese consumers, who eagerly lined up to own one.
Just three years ago, China had nearly 100 domestic smartphone manufacturers. However, according to Counterpoint’s research on the Chinese smartphone market in the third quarter of this year, the top five brands now control 82.5% of the market. This dramatic shift shows that the industry is undergoing significant consolidation. Traditional giants like Lenovo and ZTE, as well as smaller brands such as HuaWei, Meizu, 360, and LeTV, have been pushed into a niche market, accounting for less than 18%. The shake-up is not just starting—it's already almost complete.
At the recent World Internet Conference in Wuzhen, only two major Chinese 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, wasn't. Instead, he was busy launching a new AI-powered phone in London, signaling a shift in focus toward artificial intelligence.
The evolution of mobile phones has come a long way. From simple feature phones that only allowed communication, to smartphones that became essential tools for daily life, and now to AI-powered devices that act as true personal assistants. While handheld computers failed to fulfill their promise 20 years ago, AI technology is now making it possible.
In 2007, Apple launched the first iPhone, and by 2017, the industry entered its first year of AI smartphones. Over the past decade, the mobile phone sector has reached a critical turning point.
Smartphones were once seen as the pinnacle of innovation, but over the last ten years, they’ve mainly undergone internal refinements without significant external breakthroughs. The market has become saturated, with intense competition driving up supply chain costs and leading to product homogenization. A new revolution is inevitable.
Looking back, the mobile phone industry has gone through three major revolutions. The first came in 1983 with Motorola’s DynaTAC8000X, the world’s first commercial mobile phone. Though bulky and limited in function, it marked the beginning of freedom from landlines.
The second revolution saw mobile phones evolve into multi-functional devices with operating systems and apps, thanks to advancements in hardware and digital networks. Nokia led the charge, while companies like Sony and Samsung rose to prominence with innovative designs.
The third revolution arrived in 2007 with the iPhone, which transformed the phone from a communication tool into a computing device, opening the door to the mobile internet era.
Now, the next big step is the rise of AI-powered smartphones. Apple, Huawei, and Glory are at the forefront, exploring new technologies to drive the industry forward. In 2017, Apple introduced the A11 chip, Huawei launched its Kirin 970 AI chip, and Glory unveiled the Magic and V10 models, marking the beginning of AI smartphone mass production.
AI phones are designed to be more intuitive, efficient, and personalized. They can understand user intent, simplify tasks, and perform powerful computations using specialized chips like NPU. The key to an AI phone lies in having an AI chip, and currently, only Apple and Huawei possess this technology.
Glory’s success with AI phones has been impressive, as shown by its “single commission bonus plan,†which rewards employees based on user growth. This indicates strong market demand and confidence in the future of AI technology.
As the industry moves forward, those who fail to adapt risk being left behind. As Zhao Ming said, in the age of AI, companies without AI capabilities may struggle to survive. The race is on, and the next few years will determine who leads the future of mobile technology.
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