Stocks in the mobile phone supply chain experienced a broad-based increase. At the time of writing, Q TECH (01478) rose 7.89% to HK$9.3. AAC TECH (02018) advanced 4.77% to HK$38.66. Sunny Optical (02382) gained 4.3% to HK$59.4. COWELL (01415) increased 2.88% to HK$29.28.

According to Omdia projections, global smartphone shipments are expected to grow 2% year-on-year in 2025, reaching 1.25 billion units. In the fourth quarter of 2025, the global smartphone market grew 4% year-on-year. This growth was supported by seasonal demand recovery and improved inventory management, although some manufacturers began facing impacts from rising component costs.

Canalys anticipates that the penetration rate of AI phones will reach 34% in 2025. The streamlining of on-device models and upgrades in chip computing power are expected to further drive the penetration of AI phones into the mid-range price segment.

Bank of China International indicated that AIGC technology will propel on-device products toward multi-modal interactions, such as voice and motion. The interaction hub is shifting from the traditional app system to AI agents, gradually weakening the direct connection between users and apps. The Doubao Phone Assistant already demonstrates an early form of this trend.

Although products are still in the early stages, as functions mature and user experience improves, the revolutionary change in AI interaction modes is anticipated to drive a wave of on-device handset replacements. This trend could potentially unfold over the next 1 to 3 years, catalyzing activity in the midstream and downstream segments of the AI industry chain.