# China is reinventing smartphones with AI agents ZTE's NaviX Ultra sold out in hours as AI phones gain momentum - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-07-18 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/c77ecb81-cbd2-414c-97ed-4fae13ff54a5 ## The rise of AI phones ZTE unveiled the NaviX Ultra, calling it the world's first 'agentic AI smartphone'. Powered by ByteDance's Doubao agent, the device activates via voice or dedicated button. The initial 30,000 units sold out rapidly, with resale prices doubling in secondary markets. ## Competitive landscape ZTE isn't alone: StepFun introduced its Amoo agent with proprietary OS, while Honor showcased an AI solution co-developed with Alibaba. All aim to deliver an autonomous cross-app task execution layer, moving beyond traditional 'bolted-on AI features' approaches. ## Market pressures China's smartphone shipments have declined for five consecutive quarters. Rising component costs and weakening demand create challenges. IDC predicts record global market decline by 2026. AI phones may offer manufacturers a viable path forward in this constrained environment. ## Apple rivalry intensifies Chinese manufacturers claim AI leadership over Apple, which recently secured approval to deploy Apple Intelligence in China via Baidu and Alibaba partnerships. ZTE's Ni Fei stated 'We're ahead of Apple in AI smart devices,' signaling growing competition in this space. ## Consumer adoption question Will flight-booking or photo-editing agents convince users to replace existing devices? Market answers may emerge by year-end. IDC forecasts AI devices could capture over 50% of China's smartphone market, though real-world utility remains unproven at scale. ## Industry transformation The AI boom killing budget smartphones simultaneously creates a new device category. For Chinese manufacturers facing margin pressures, integrated AI agents promise both user experience revolution and potential cost relief - if consumers embrace this paradigm shift. ## Sources covering this story - https://thenextweb.com/news/china-agentic-ai-smartphones-zte-navix-doubao-waic — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._