According to the latest report by International Data Corporation (IDC), China's smartphone market witnessed shipments totaling 68.96 million units in the second quarter, marking a 4.0% year-on-year decline. Looking ahead, the market is anticipated to encounter continued pressure in the third and fourth quarters. However, with the rekindling of the replacement cycle, nascent signs of recovery in the AI-driven premiumization trend, intensified promotional activities, and the approach of the peak sales season, a market rebound is on the horizon. China's mobile phone industry chain has demonstrated robust resilience, showcasing continuous enhancement in collaborative innovation capabilities. Mobile phone manufacturers must intensify their innovation efforts, leveraging AI technology to differentiate themselves in a competitive landscape where technological advancements in mid-to-high-end models have emerged as the linchpin for achieving breakthroughs. These insights were shared by Zhang Xiaorong, President of the Institute of Deep Technology Research.