ByteDance Expands AI Hardware with Smartphones and Glasses, Denies Car Plans

ByteDance, the tech giant behind TikTok, is making strategic moves into AI hardware, focusing on smartphones, earphones, and smart glasses, while denying rumors of entering the car manufacturing sector. This expansion signals the company's ambition to capture user attention through innovative AI-powered devices, as its core apps face slowing user growth.

The recent launch of the Doubao AI Phone, developed in collaboration with ZTE Corporation, highlights ByteDance's push into AI-native mobile devices. The phone, which sold out its first batch of 30,000 units in just 47 minutes, integrates ByteDance's AI technologies, including the Doubao large-scale model and Cuia Agent intelligent agent. This move aims to offer users a distinct experience, breaking away from traditional mobile phone designs.

Despite the success of the AI phone, ByteDance faces challenges in reshaping the mobile industry. AI-native phones disrupt the existing business models of mobile manufacturers, which may explain ByteDance's cautious approach. The company's acquisition of Smartisan Mobile and its continued investment in the brand suggest a long-term commitment to the mobile sector, despite the financial risks.

AI Glasses and Beyond

ByteDance is also exploring AI glasses, which are set to weigh less than 50g and feature advanced capabilities like the Qualcomm AR1 chip. These glasses, part of a broader ecosystem that includes AI headphones, are designed to capture users' fragmented time away from mobile devices. The glasses will initially be tested in limited quantities, with no immediate plans for public sale.

The AI glasses project aligns with ByteDance's strategy to leverage AI hardware to maintain user engagement. As the company's apps reach user saturation, hardware like glasses and earphones offer new opportunities to keep users within the ByteDance ecosystem. This approach mirrors the broader industry trend of using AI to reinvent traditional hardware categories.

ByteDance's AI hardware initiatives extend to the automotive sector, where it has partnered with Mercedes-Benz on intelligent cockpit solutions and digital marketing. While the company has denied plans to build cars, its collaboration with car manufacturers underscores its interest in integrating AI into the automotive industry.

Market Reaction and Outlook

The launch of the Doubao AI Phone had a significant impact on the market, with ZTE Corporation's shares hitting their daily limit and its market value exceeding 2.1 trillion yuan. This response reflects investor enthusiasm for AI-powered hardware and its potential to disrupt established industries.

ByteDance's foray into AI hardware is part of a larger trend of tech companies exploring new ways to monetize AI beyond software. OpenAI, for instance, is reportedly developing AI hardware, including a pen targeting niche markets like students. This competition highlights the growing importance of AI hardware as a key battleground for capturing user attention and driving commercialization.

As ByteDance continues to invest in AI hardware, its success will depend on its ability to innovate while navigating the complex dynamics of the mobile and automotive industries. The company's focus on user engagement and AI integration positions it well to capitalize on the growing demand for intelligent devices.