Meizu Shifts Focus from Smartphones to AI Amid Rising Costs
Meizu Bids Farewell to Smartphone Development
The once-prominent Chinese smartphone brand Meizu has made a dramatic strategic shift. On February 27, 2026, the company confirmed it would stop developing new smartphone hardware for the domestic market. Rising component costs, particularly memory chips, proved the final blow to their struggling mobile business.
From Hardware Pioneer to AI Specialist
Meizu isn't disappearing - it's transforming. The company outlined an ambitious transition plan:
- Full embrace of AI: Shifting resources entirely to artificial intelligence software development
- Open ecosystem strategy: Expanding access to its Flyme operating system
- Automotive ambitions: Partnering with Geely Automotive to deliver 3 million smart cockpit systems
"This isn't an ending," a company spokesperson explained, "but rather our next evolution."
What Stays, What Goes?
While domestic smartphone development ends, Meizu maintains several operations:
- Overseas phone business continues unaffected
- Popular accessories like AI glasses remain available
- The trendy PANDAER brand stays operational
The company assures existing customers will receive continued software updates and support.
Industry Reactions
The move reflects broader challenges facing smartphone makers. With hardware margins shrinking and development costs rising, companies increasingly view AI as their future. Meizu's parent company Wuhan Xingji Mifi Technology appears determined to embed AI throughout automotive and wearable tech markets.
The question remains: Can this former phone maker successfully reinvent itself as an AI specialist?
Key Points:
- Meizu exits domestic smartphone R&D after memory price hikes
- Strategic focus shifts completely to AI development
- Existing products and overseas operations continue
- Partnership with Geely targets smart cockpit systems

