Meizu Ditches Smartphones for AI Future Amid Rising Costs
Meizu's Bold Shift: From Phones to AI
In a move that signals changing tides in China's tech landscape, smartphone veteran Meizu has announced it's pulling the plug on domestic phone development. The decision comes as rising component costs, particularly memory chips, squeeze profit margins beyond sustainable levels.
The Last Straw That Broke the Business
"Memory prices were the final nail in the coffin," admitted a company spokesperson. Over the past year, skyrocketing costs for essential components have transformed smartphone manufacturing from challenging to nearly impossible for niche players like Meizu.
Embracing an AI-Driven Future
The company isn't fading away - it's transforming. Meizu's new roadmap reveals:
- Full commitment to AI: Shifting resources from hardware to intelligent software ecosystems
- Flyme goes open: Expanding its operating system platform for broader industry adoption
- Geely partnership accelerates: Targeting installation of 3 million smart cockpit systems in vehicles
"This isn't goodbye to innovation," said CEO Zhang Li during Tuesday's announcement. "It's hello to our next chapter."
What Stays, What Goes?
While domestic phone development ends, other operations continue:
- Overseas smartphone sales remain active The trendy PANDAER brand and AI glasses line stay operational Existing customers retain full support and system updates
The transition reflects broader industry trends as companies weigh hardware challenges against software opportunities.
Industry Watchers React
"Meizu's move shows how quickly the ground is shifting," noted tech analyst Wang Jing. "When even established players can't make phones work financially, it forces everyone to rethink their strategies."
The company's Wuhan-based R&D center will now focus entirely on injecting AI into automotive and wearable technologies.
Key Points:
- Meizu halts domestic smartphone development due to component costs
- Strategic pivot focuses on AI software and smart car systems
- Existing products continue with full customer support
- Partnership with Geely aims for 3M smart cockpit installations
