In the era of the great AI revolution, how can a smartphone solution provider become a pioneer in breaking the deadlock in the red ocean?

In 2025, the smartphone industry has finally witnessed a long - awaited recovery. According to IDC data, the shipment volume of AI smartphones in China soared by 591% year - on - year in 2024, and the penetration rate has jumped from 3% in 2023 to 22%. It is estimated that the shipment volume will exceed 118 million units in 2025, accounting for 40.7% of the overall market. Undoubtedly, AI smartphones will represent the third stage after feature phones and smartphones.

Since the emergence of ChatGPT in 2022, the flame of AI has spread to the smartphone industry, gradually reshaping users' perception of the mobile phone experience.

However, as AI becomes more accessible, users are tired of the stacking of parameters and are eager to see a real leap in experience. From the initial collective efforts of manufacturers in the research and development of general large - scale models to the current return to the essence of value, the empowerment of the mobile phone industry by AI has also shifted from a single - dimensional approach to in - depth development, from showy skills to practical applications.

AI smartphones (Source: Internet)

As an established enterprise that has witnessed the changes and iterations in the mobile phone industry, Kusei Intelligence has evolved from manufacturing printed circuit board (PCB) assemblies to establishing the mobile phone brand Koobee, and then transformed into empowering overseas local brands and operators behind the scenes. Now, it has also deeply felt the changes in the AI smartphone market.

In the AI era, a comprehensive battle across scenarios and multi - modalities has already begun. Manufacturers must complete the construction of comprehensive capabilities from single - category products to cross - device applications. While deeply cultivating the differentiated market, Kusei Intelligence has extended its strategic vision to a broader dimension. Since last year, in addition to software services, Kusei Intelligence has been deploying new hardware species in the AI era, seeking a second growth pole outside the main business.

This is not only an active move but also an inevitable choice in the face of the new technological wave. As an intelligent hardware enterprise at the forefront of the industry, it is ready to cross the next technological step.

In the post - self - developed large - scale model era, from parameter competition to adapting to local conditions

In 2025, a manufacturer's AI native ability is no longer just an added bonus but a core skill related to survival.

However, if we look back at the past few years, major manufacturers were once obsessed with computing power. Self - developed large - scale models became a symbol of strength and a sign of being at the forefront, and they were also the most prominent part of their product launches.

However, users soon found that most of the innovations brought by AI to mobile phones were minor, such as photo optimization, real - time translation, document summarization, and voice assistants. As a result, the vast majority of consumers believed that "an AI smartphone is just a regular smartphone with an additional voice assistant."

The high cost of computing power and users' disillusionment with AI have made enthusiastic manufacturers realize that a simple parameter arms race cannot bring about structural breakthroughs. In the AI era, hardware products still need to return to a simple value criterion: whether they can provide indispensable experience improvements.

"Nowadays, mobile phones have become people's life companions, and intelligent assistants and future intelligent agents will be an important form of mobile phone AI. Their ability to recognize, understand, and fulfill users' intentions will become an important feature for differentiating mobile phones and other products," said Chen Kaifeng, the chairman of Kusei Intelligence, in an interview.

Kusei Intelligence's AI strategy is precisely the implementation of this concept. As a stable and cautious full - stack solution provider for intelligent hardware, since the beginning of its AI deployment a year ago, Kusei Intelligence has established a dynamic collaborative solution of "front - end small models + back - end large models," which is also the key for Kusei Intelligence to stay at the forefront in the AI era.

In terms of general functions, Kusei Intelligence has cooperated with giants such as iFlytek, ByteDance, Alibaba, and Google, integrating the computing power of their mature large - scale models, such as Doubao, Qianwen, and Gemini. At the same time, Kusei Intelligence has deployed a vertical small model with about 600 million parameters, specializing in functions such as call summarization, document summarization, and intention understanding, to achieve rapid response on the device side.

Kusei Intelligence's AI assistant (Source: Company)

Small does not mean "weak" but rather "precise" and "fast," which also means more flexibility and higher efficiency. Due to targeted optimization and debugging, Kusei Intelligence's small models can even provide more targeted solutions for vertical tasks than large models.

More importantly, for overseas customers, privacy and data security are the core decision - making points. The small model on the device side can keep data locally, minimizing the risk of data leakage. As a company focusing on overseas markets, Kusei Intelligence's collaborative solution of large and small models achieves a multilateral balance among computing power, speed, personalization, and privacy.

Kusei Intelligence's investment in AI has been directly reflected in its intelligent assistant. In the past, most voice assistants could only respond passively according to limited preset instructions, such as "set an alarm" or "play music," and were unable to understand semantic changes, let alone perform context - based reasoning. This is also the fundamental reason why users generally consider voice assistants useless.

Now, the AI voice assistant can truly understand natural language and actively infer based on vague instructions. For example, when it hears "help me find the photo with red flowers that I took in the park last week," the assistant will not be confused by multiple information points but can accurately locate a specific photo.

Kusei Intelligence's AI assistant can also provide personalized services by learning users' preferences and habits, such as automatically adjusting mobile phone settings, recommending potentially needed information in advance, and organizing call summaries. It can be said that in addition to being a life assistant, it is also a productivity tool for improving efficiency.

If we were to compare computing power, complexity, and breadth, Kusei Intelligence may not be the most outstanding player. However, with a practical and meticulous approach, it has completed its AI layout. For the industry, Kusei Intelligence provides an entry paradigm with universal significance and reference value.

Of course, Kusei Intelligence's success in implementing this "general + personalized" strategy stems from the accumulation of its research and development strength over more than a decade. Kusei Intelligence's R & D investment has been increasing for three consecutive years, with a growth rate of more than 40% in 2024, reaching 226 million yuan. Such investment has enabled Kusei Intelligence to build a full - stack R & D ability from hardware to software. The comprehensive technical control allows Kusei to achieve in - depth coupling and optimization of AI models with hardware and the operating system, giving full play to its maximum potential.

This is also an inevitable choice in the era of globalization. In the diverse and fragmented overseas markets, Kusei Intelligence's collaborative solution of large and small models enables AI to not only "take root locally" but also "evolve locally." This is the most profound empowerment for overseas local markets.

In an era of emotional barrenness, creating new AI hardware species

Kusei Intelligence's practical "general + personalized" AI strategy has created a "brain" that is highly adaptable to the local environment. However, if this "brain" is only limited to the smartphone carrier, it will obviously not be able to fully unleash its potential.

In 2025, a notable phenomenon is that international mobile phone brand manufacturers have collectively started to focus on AI hardware products, which has become a trendsetter for the entire industry. The position of the mobile phone as the information hub is unshakable. However, it cannot be denied that the current interaction of mobile phones has reached its limit. In the next decade, with the deepening of AI technology, multi - terminal collaboration will be the ultimate goal. Mobile phone manufacturers' layout of AI hardware is essentially an attempt to seize the high - ground of the next human - computer interaction entrance.

Products of the AI era (Source: Internet)

Amidst the changes, Kusei Intelligence must also establish its own breakthrough point.

In the vast product portfolio, Kusei Intelligence has targeted the need for "emotional connection."

The desktop robot, as a potential future center for families, has first caught Kusei Intelligence's attention.

This is a track that has received wide attention in recent years. Due to its emotional nature, the desktop robot track has become the most sticky AI product at present. However, because users' emotional needs are subtle and delicate, and manufacturers need to accurately segment the population, this track has not been monopolized by giants.

This is actually an opportunity for mid - tier and even startup companies. Different players target different users and enter the scenario in different forms. Once they meet the emotional needs of specific users, they can gain a foothold. For example, the Looi robot, which was praised by Elon Musk, is equipped with a "bionic behavior system" that can simulate the "perception - decision - execution" process of intelligent organisms and has a dreaming function.

Based on this insight, Kusei Intelligence has chosen to precisely target the market of children aged 5 to 13 and positioned its desktop robot as an "intimate digital companion," emphasizing the creation of a "sense of life."

To establish a deeper emotional bond with children, the face of Kusei's desktop robot uses a high - definition display screen that can show natural expressions and interactive interfaces. At the same time, it has more than 800 behavior manifestations and long - term memory capabilities, allowing children to feel a continuous companionship. In terms of communication, through multi - modal perception of voice, vision, and touch, the robot's feedback is more real and natural. It can be said that Kusei Intelligence provides not a cold robot but a friend with empathy.

In addition to desktop robots, Kusei Intelligence has also discovered another entrance for carrying family memories and emotional communication - the AI photo frame.

Functions of Kusei Intelligence's AI photo frame (Source: Company)

The electronic photo frame is actually an old industry. As early as 2000, some manufacturers explored displaying digital photos on small electronic screens. However, the emergence of AI has brought a huge opportunity for this traditional product to be upgraded to a "smart terminal."

In March this year, the smart photo frame BLOOMIN8 raised more than $1.5 million in crowdfunding on Kickstarter. At the same time, many new products have emerged in the "Smart Frame" category. This industry is quietly reviving.

People's emotions are fluid, and a product that truly touches users' hearts must be able to resonate with their emotions. With the support of AI, the electronic photo frame will go beyond the "display" function. Personalized adaptation is the most core change. The new - generation smart photo frame can provide personalized voice interaction for specific groups (such as the elderly), enabling long - distance communication between family members. It can also adjust the color according to the home style to match the home decoration. When the electronic photo frame is integrated into daily life, it will transform from a "decoration" into a narrator and recorder of family stories.

In the AI era, people will be constantly impacted by technology. In the rapid changes, feelings of uneasiness, confusion, and alienation will always accompany them. A warm and real emotional connection will be extremely precious. Although the technological power of AI hardware is important, the human - touch factor is the core differentiator.

Kusei Intelligence never wants to just manufacture cold intelligent tools. In their view, AI is not a technology exclusive to the elite but should be a basic productivity that benefits ordinary people's lives.

In the past two decades, Kusei Intelligence has provided solutions for customers in more than 70 countries and regions. As AI drives the world into another technological era, Kusei Intelligence enables users in different countries, regions, and climate zones to equally enjoy the benefits of AI, bridging the technological gap. This is a real - sense digital equality and also the responsibility and mission of a global enterprise.

Kusei Intelligence's R & D laboratory (Source: Company)