TECH

Geely-Backed Meizu Stops New Phone Development, Turns to AI and Auto Tech

Published: Feb. 28, 2026 3:29 a.m. GMT+8

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Founded in 2003 by Huang Zhang as a maker of MP3 players, Meizu entered the smartphone market in 2009 and built a reputation as a niche but design-focused challenger brand. Photo: VCG

Meizu Technology Co. Ltd., controlled by automaker Zhejiang Geely Holding Group Co. Ltd., will halt development of new self-branded smartphones for the Chinese mainland, retreating from a cutthroat market to focus on automotive software and artificial intelligence.

The decision highlights intensifying pressure on smaller players in the world’s largest smartphone market, where soaring component costs and the dominance of Huawei Technologies Co. Ltd. and Apple Inc. are accelerating consolidation and squeezing out weaker brands.

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Meizu will stop developing new smartphones for China, shifting focus to automotive software and AI, citing surging memory costs and low market share (<0.5%).
Existing phone sales and overseas operations continue via partnerships; Meizu plans to license its Flyme OS to other manufacturers.
China’s smartphone market is dominated by Huawei, Apple, Vivo, Xiaomi, and Oppo (15.2%-16.4% market share each), leaving little space for smaller brands.

AI generated, for reference only

Who’s Who

Meizu Technology Co. Ltd.: Meizu Technology Co. Ltd., owned by Zhejiang Geely Holding Group, will cease developing new self-branded smartphones for mainland China. The company, which gained recognition as a niche, design-focused smartphone brand after pivoting from MP3 players, will now concentrate on automotive software and AI. This shift is due to intense market competition, rising component costs, and the dominance of larger players like Huawei and Apple, with its market share having significantly declined.

Zhejiang Geely Holding Group Co. Ltd.: Zhejiang Geely Holding Group Co. Ltd. controls Meizu Technology Co. Ltd. Geely chairman Li Shufu's company acquired a majority stake in Meizu in 2022, integrating it into Hubei Xingji Meizu Group. Geely aims to leverage Meizu's software capabilities for smart vehicles, particularly its Flyme Auto in-vehicle system, with a goal of reaching three million units within the Geely group by 2026.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is a dominant player in the Chinese smartphone market. Along with Apple Inc., its presence intensifies pressure on smaller competitors. In 2025, Huawei was among the top five brands in China's smartphone market, holding a significant share alongside Apple, Vivo, Xiaomi, and Oppo.

Apple Inc.: Apple Inc. is mentioned as one of the dominant players in China's smartphone market, alongside Huawei. Its market share, according to IDC data for 2025, ranges between 15.2% and 16.4%, leaving little room for smaller competitors. The company's strong presence contributes to the intense pressure faced by smaller brands.

Alibaba Group: Alibaba Group invested in Meizu in 2015, a move that significantly boosted Meizu's smartphone shipments to over 20 million units that year. However, Meizu later faced challenges including management turmoil and patent disputes, leading to a decline in its market share. This ultimately resulted in Meizu halting new smartphone development to focus on automotive software and AI.

Hubei Xingji Meizu Group: Hubei Xingji Meizu Group was formed in March 2023 by integrating Meizu Technology Co. Ltd.'s businesses. Meizu, controlled by Geely chairman Li Shufu, shifted its focus from smartphones to automotive software and AI, particularly its Flyme Auto in-vehicle system.

Vivo: Vivo is one of the dominant brands in China's smartphone market. According to IDC data from 2025, Vivo holds a significant market share, ranging from 15.2% to 16.4%, placing it among the top five smartphone companies in the region, alongside Huawei, Apple, Xiaomi, and Oppo.

Xiaomi: Xiaomi is one of the dominant players in China's smartphone market. According to IDC data for 2025, Xiaomi holds a significant market share, ranging from 15.2% to 16.4%, placing it among the top five brands alongside Huawei, Apple, Vivo, and Oppo. This strong market position highlights the challenge faced by smaller competitors.

Oppo: Oppo (Chinese: 欧珀) is one of the dominant brands in China's smartphone market. According to IDC data for 2025, Oppo holds a significant share, ranging from 15.2% to 16.4%, placing it among the top five major brands in the country.

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What Happened When

2003：: Meizu was founded by Huang Zhang as a maker of MP3 players.

2009：: Meizu entered the smartphone market.

2015：: Meizu received investment from Alibaba Group; annual shipments topped 20 million units.

By the first quarter of 2022：: Meizu’s market share fell to around 0.1%.

July 2022：: A company controlled by Geely chairman Li Shufu acquired a 79.09% stake in Meizu.

March 2023：: Meizu's businesses were integrated into Hubei Xingji Meizu Group.

By 2025：: Meizu’s cockpit platform had been installed in more than 2.26 million vehicles.

2025：: IDC data showed China’s smartphone market was dominated by Huawei, Apple, Vivo, Xiaomi, and Oppo.

Lunar New Year 2026：: Speculation arose that Meizu would shut down or liquidate inventory; Meizu denied the claims.

February 27, 2026：: Meizu announced it would halt in-house hardware projects for domestic smartphones and is in talks with third-party hardware partners.

AI generated, for reference only