Meizu, a prominent Chinese technology company, has recently taken a bold strategic step by announcing the halting of new smartphone development. Instead, the company is redirecting its focus towards the creation of next-generation devices powered by artificial intelligence (AI), embracing an "All in AI" approach to innovation.
A Shift Towards AI
This transition signifies a pivotal moment for Meizu as it pivots from being solely a mobile phone company to evolving into an "ecological group." Shen Ziyu, Chairman and CEO of Xingji Meizu Group, highlighted this transformation, emphasizing the shift towards AI-driven technologies as the future direction of the company.
Meizu has made significant progress in developing immersive multi-terminal experiences and establishing strategic partnerships through its Unbounded Zhixing open platform. The MYVU brand by Meizu has also solidified its position as a front-runner in the realm of AR glasses, showcasing the company's commitment to cutting-edge technologies.
Adapting to Market Trends
Acknowledging the changing dynamics of the smartphone market, Shen Ziyu noted that consumers are now holding onto their devices for extended periods before upgrading, with an average of 51 months between purchases. This trend is fueled by the comparable performance levels offered by smartphones across different brands in terms of features, camera quality, and overall user experience.
The current landscape of smartphone innovation is characterized by an intense competition focused on incremental upgrades such as increased memory, larger camera sensors, and faster charging capabilities. Meizu recognizes the industry shift towards a "stacked parameters" approach where brands engage in tactics like highlighting shortcomings of competitors to gain attention.
Strategic Decisions and Future Plans
In response to these market dynamics, Meizu has chosen to step away from its smartphone business, leading to the cancellation of upcoming models like the Meizu 21 Pro, Meizu 22, and Meizu 23. This decision aligns with Meizu's history of adapting to emerging technologies, such as transitioning from MP3 players to smartphones during previous market shifts.
The company's strategic realignment towards AI involves extensive preparations, including team building, resource allocation, and product planning. Meizu aims to launch a new mobile operating system tailored for the AI era in 2024 and introduce its first AI hardware product later this year, marking a significant milestone in its technological evolution.
Embracing AI Technologies
Former Meizu executive Li Nan has expressed support for the company's strategic shift, emphasizing the importance of embracing AI for future growth and innovation. Meizu's commitment to developing open hardware solutions for AI applications demonstrates its dedication to advancing technology in collaboration with its user base.
Despite the transition away from smartphone development, Meizu reassures its customers that ongoing support for existing products and services will continue without disruption. The company's offline stores across China will remain accessible to users, ensuring a seamless experience for consumers.
In conclusion, Meizu's decision to prioritize AI-driven technologies underscores its commitment to staying at the forefront of innovation and adapting to evolving market trends. By embracing AI as a core focus, Meizu positions itself for continued success in the rapidly evolving technology landscape.
