# AI smartphones

ZTE’s AI Pivot Accelerates: Compute Platforms and AI Phones Power Growth as Margins Come Under Pressure

ZTE’s 2025 annual report shows the company shifting decisively into AI: compute products grew explosively and now make up nearly a quarter of revenue, while AI‑native phones and home terminals are expanding the consumer footprint. Strong top‑line growth has been offset by rising component costs and margin pressure, prompting heavy R&D spending and a push toward integrated solutions to secure long‑term profitability.