StepOn has taken an early lead in the race.

On the evening of July 13, StepOn (hereinafter referred to as "StepOn") launched its first intelligent agent smartphone, the STEPX Neo. This marked the introduction of the AI terminal brand STEPX, centered around its officially termed "AI Native" hardware, the native system Step AOS (Step Agentic-native OS), and the primary intelligent agent Amoo.

StepOn has also theoretically forged a "Model-Software-Hardware" trinity closed loop, spanning models, systems, and terminals.

In the opinion of its Chairman, Yin Qi, StepOn’s foray into hardware was a tough call. He noted that many in the terminal business cautioned against "diving into hardware," but ultimately, the decision was made to pursue truly large model-native AI terminals—hardware designed exclusively for AI Native purposes.

They believe that hardware without AI has little value. This path is more demanding and resource-intensive. StepOn aims to bridge the gap from intelligent agents being able to "think and speak" to truly "getting things done" through integrated software-hardware solutions, end-cloud collaboration, and ecosystem partnerships.

StepOn’s AI Launch Event: Only Partway There

Yin Qi’s implementation strategy was strategic. He announced on-site that this launch event was merely the first half, with StepOn planning to co-create an intelligent agent ecosystem with users over the next 100 days, including various intelligent agents and skills. More intelligent agents are set to debut at a follow-up event after these 100 days.

Judging by the current timeline, the STEPX Neo hardware is ready, and the overall architecture, core capabilities, and security framework of Step AOS have been disclosed. However, the product is still in the experience refinement and early co-creation phase.

According to Yin Qi, the current product is about 70% complete, with the remaining 30% to be finalized through real user interactions, focusing on trust, authorization, end-cloud task allocation, and specific scenario adaptations.

It is evident that this launch event, which seems to have completed a full-stack AI-native terminal layout, has merely rushed ahead of the industry to present concepts, frameworks, and narratives. It still falls short of being a truly deliverable, experienceable, and scalable "product" for the second half, with at least two more iterations of "Doubao AI smartphones" needed to bridge the gap.

In December 2025, the Nubia M153 Doubao smartphone assistant technology preview version quietly went live.

Developed through deep collaboration between ZTE and ByteDance, this phone, though just an engineering prototype with non-top-tier configurations and a limited production run of 30,000 units, made waves in the industry and among consumers upon its release, despite minimal promotional efforts.

Leaked spy photo of the upcoming Nubia AI intelligent agent smartphone. Source: Online screenshot

The Doubao AI smartphone stood out because it provided a viable path for AI smartphones to achieve true "deep intelligence."

Recently, ZTE has strategically released several waves of information regarding the "first AI intelligent agent smartphone." The key point is that Ni Fei, President of ZTE’s Terminal Business Group, confirmed that the "world’s first AI intelligent agent smartphone" would indeed come from Nubia. It is set to make its public debut at WAIC 2026 (World Artificial Intelligence Conference) as a mass-produced flagship model available to ordinary consumers.

Clearly, StepOn has seized a timing advantage to preemptively claim the label of the "first AI intelligent agent smartphone." It hopes to offset traditional manufacturers’ mass-production advantages through a first-mover narrative, buying time for product refinement and ecosystem development.

Interestingly, Yin Qi’s proposed "100-day ecosystem co-creation period" effectively initiates a futures-style launch model—"announcing concepts first, delivering products later."

This approach of "staking a claim first, then filling in the gaps" and pushing semi-finished products into the public eye may become the new norm for large model vendors entering the AI terminal hardware space. While not necessarily a positive trend, it reflects the collective anxiety within the AI terminal industry.

Over the past two years, the iteration speed of foundational models has far exceeded expectations, with inference costs dropping rapidly. Large model vendors can no longer rely solely on model parameters to establish commercial barriers. The focus of industry competition has shifted toward AI’s ability to perform tasks and even physical AI.

Hardware represents a crucial entry point in this competitive landscape. Whoever controls hardware access gains the optimal solution for accumulating user data and building an ecosystem closed loop. For instance, Yin Qi believes that large models need suitable terminals to reach consumers, forming closed loops of experience, data, and commerce at the consumer end.

OpenAI found itself in court with Apple primarily because Altman "learned from" Apple by establishing a next-generation hardware business, aiming to redefine human-computer interaction logic in the AI era.

From this perspective, StepOn is replicating OpenAI’s strategy, leveraging China’s rich application scenarios and complete supply chain to complete the foundational architectural layout of "Model-System-Hardware" first. Public information shows that StepOn has previously prioritized "foundational models" and "AI+terminals" as key strategies, collaborating with multiple smartphone and automotive manufacturers.

Of course, Yin Qi denied this analogy. When asked in a media interview whether making smartphones was inspired by OpenAI’s hardware plans, he said, "No. We are also unfamiliar with OpenAI’s unreleased hardware products." StepOn pays attention to the thinking of companies like Google and Apple but ultimately needs to forge its own technological and product path.

However, it is certain that this self-developed, integrated software-hardware path represents the best window of opportunity for domestic model vendors to seize global AI terminal discourse. Once missed, when Apple and Samsung catch up, domestic latecomers will be confined to playing by rules defined by others.

Thus, "StepOn" and its peers are eager to secure track discourse and mindshare. Even if the underlying technology, application ecosystem, and hardware are immature, they settle for occupying a conceptual position first and then use time to "fill in the gaps."

This anxiety-driven paradigm innovation is pragmatic but risky. When "launch" no longer equates to "delivery," it becomes a "letter of intent." So-called user co-creation then serves as a buffer for product immaturity, deviating from the original intent of open collaboration.

I do not deny the strategic value of StepOn’s proactive efforts to break the mold and redefine interaction paradigms. However, if StepOn fails to deliver compelling products after 100 days, user and market patience will be exhausted.

Is this not also a form of compromise?

Yin Qi’s Challenge

As one of the "Six Little Dragons" in AI, StepOn holds no clear advantage over competitors like Zhipu, MiniMax, and Moonshot AI in terms of AI commercialization or financing (IPO) prospects. However, being in a critical phase of valuation growth and preparing for an IPO, it urgently needs a new commercial narrative to validate that its model can be a viable business.

In other words, StepOn is not just aiming to sell more AI hardware; it seeks to prove its ability to provide AI solutions to smartphone manufacturers. Yin Qi’s self-imposed logic of not defining success solely by sales volume is sound. However, this strategy of not "selling phones for the sake of selling phones" while still seeking real user feedback at scale to refine products remains particularly aggressive amid the current consumer electronics downturn.

In contrast, ZTE’s commercial logic is much clearer: AI is a selling point but not a profit center. The phone itself still generates revenue through hardware margins, with AI features enhancing product premium and user stickiness to ultimately serve shipment volume targets. This is a mature model repeatedly validated in the traditional consumer electronics industry.

Yin Qi explains why StepOn is pursuing AI-native hardware. Source: Zhidx

StepOn hopes to control hardware access to sell more model services, which is why it still places foundational models at the strategic core.

However, transitioning from selling APIs to selling services involves a significant cognitive gap. Users are willing to pay for ChatGPT’s conversational abilities because it provides immediate informational value. However, for intelligent agents to handle tasks like booking tickets, the payment logic is entirely different.

Such operations do not generate new informational value; they merely replace manual user actions that could originally be done for free and independently. There is inherently little demand for paid services unless intelligent agents can offer lower prices, faster speeds, or better options than manual operations. Otherwise, the motivation to pay is extremely weak.

Looking at other players, Apple’s strategy is to embed AI capabilities into hardware premiums, with users already paying for Apple Intelligence when purchasing an iPhone. Huawei, through its HarmonyOS ecosystem, ties AI capabilities to cloud services and app stores, forming cross-subsidies.

The commonality of these models is that AI commercialization is embedded within existing, mature charging systems rather than existing independently.

StepOn’s problem is that it lacks hardware profit margins as a safety net and has no pre-existing ecosystem to rely on. When hardware is unprofitable and the ecosystem is still in the "wishful thinking" stage, this experiment resembles an expensive "user co-creation" test.

The capital market may tolerate strategic losses but will not wait indefinitely.

At the second-half launch event after 100 days, if Yin Qi fails to present a clear commercialization path, external doubts will only grow. Not relying on hardware for profit is an attitude, but how to make money is a survival issue—and the latter remains unanswered.

Admittedly, this launch event holds significant industry value. StepOn clearly differentiates traditional AI smartphones from native intelligent agent smartphones, fills in the foundational narrative for domestic AI software-hardware integration, and outlines possible forms of intelligent agent terminals for the industry.

However, industry competition has never been about ideas, narratives, or PPT parameter comparisons. The ultimate test for AI terminals lies in real-world experience, user value, a complete ecosystem, and commercial closed loops.

For StepOn, the half-launch is just the beginning; the real challenge lies in the next 100 days.

This 100-day window is critical for StepOn to address product shortcomings and validate its strategic feasibility. I also hope that at the second-half launch event, we will see not just more intelligent agents and better benchmark scores but real answers that bridge the gaps in hardware, ecosystem, and commerce.

Additionally, Yin Qi will face an increasingly crowded AI terminal track. Recent news indicates that Honor and Alibaba are set to announce a major collaboration at WAIC 2026, likely focusing on the practical implementation of the next-generation terminal operating system, Agentic OS.

Prior to this, Honor has been the most advanced among domestic leading smartphone manufacturers in implementing AI strategies. Its latest flagship, the Honor Robot Phone, subverts traditional smartphone forms by incorporating a "hidden mechanical arm gimbal system."

In terms of interaction, combined with the on-device large model YOYO’s emotional recognition, the camera can intuitively respond to users through physical actions like nodding and shaking its head, giving AI a physical presence.

This also means that StepOn’s 100-day window of opportunity will face far greater competitive pressure than expected.

References:

Tencent Technology, "Yin Qi’s 200 Days at StepOn: Aiming for More Than Just a 'Doubao Phone'"

Tang Chen’s Classmate, "ZTE Aims to Launch the First AI Intelligent Agent Smartphone, This Time Without Doubao?"