(Yicai) Feb. 19 -- Xingji Meizu Group, a Chinese handset maker acquired by an affiliate of Geely Holding Group in 2022, said it plans to stop developing traditional smartphones and devote itself entirely to a new generation of artificial intelligence devices.

Meizu will make AI products, reconstruct its Flyme operating system, and build an AI ecosystem, according to the plans the Zhuhai-based company made public yesterday. The firm will release its first AI hardware device this year, it said.

Handsets that rely solely on hardware upgrades and competitive parameters can no longer meet consumer demand nor user experience, Chairman and Chief Executive Shen Ziyu said, adding that the entire industry needs to find new sustainable development directions.

Meizu can fully shift into the AI field, he said.

The company will have a transition plan for phones currently on sale, continue to sell existing handsets in offline channels, and provide users with maintenance services, according to its website.

Last August, Meizu decided to abandon its own chip development business and refocus on product innovation and software user experience because of global economic uncertainty, less than six months after announcing its entry into the semiconductor field.

Xingji Shidai Technology, an investment company owned by Geely founder Li Shufu, bought just over 79 percent of Meizu Technology in July 2022, with the two merging to form Meizu last March.

Editor: Martin Kadiev