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<a href="https://www.aridge.com/">Aridge</a>, the flying car subsidiary of Chinese technology firm <a href="/company/xpeng">Xpeng</a>, has raised nearly USD 200 million in a new round of equity financing.
Disclosed on March 13, the round drew participation from investors including Hillhouse Capital, HongShan, Gaorong Ventures, and Fortune Capital. Hillhouse Capital and HongShan also participated in Aridge’s earlier Series A round.
In a statement shared with KrASIA, Aridge said its cumulative equity funding has reached nearly USD 1 billion to date, making it the most funded company in Asia’s manned <a href="/industry/evtol">eVTOL</a> (electric vertical takeoff and landing) industry.
The new capital will be used to support the commercialization of Aridge’s first product, the “Land Aircraft Carrier.” The modular eVTOL vehicle features an air module that can detach from and reconnect to a six-wheeled ground module for storage, charging, and road travel.
Orders for the Land Aircraft Carrier have reportedly been building since the Civil Aviation Administration of China accepted the type certificate application for its flight body in March 2024, followed by acceptance of its production certification application for the airframe in May.
Production will be centered at a manufacturing facility in Guangzhou, with a reported annual capacity of up to 10,000 air modules. As of October 2025, the global backlog for the Land Aircraft Carrier was said to exceed 7,000 orders.
<figure id="attachment_160618" aria-describedby="caption-attachment-160618" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-160618" src="https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory.jpg" alt="Photo shows Aridge’s manufacturing facility." width="1920" height="1080" srcset="https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory.jpg 1920w, https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory-720x405.jpg 720w, https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory-1024x576.jpg 1024w, https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory-768x432.jpg 768w, https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory-1536x864.jpg 1536w, https://console.rwegrgdf5.eu.org/wp-content/uploads/2026/03/Aridge-Factory-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-160618" class="wp-caption-text">Aridge’s manufacturing facility. Photo courtesy of the company.</figcaption></figure>
Aridge was previously known as Xpeng AeroHT and <a href="https://rwegrgdf5.eu.org/xpeng-aeroht-rebrands-as-aridge-completes-first-manned-evtol-flight-in-dubai">rebranded in October 2025</a>, coinciding with a public manned test flight in Dubai, UAE. The company said the rebrand aligns with its broader globalization strategy, while founder Zhao Deli said the new name reflects its goal of “connecting sky and earth” and developing a low-altitude mobility ecosystem.
The company is considered one of China’s leading eVTOL players, alongside Nasdaq-listed EHang, known for developing one of the first autonomous passenger-carrying aerial vehicles, and Geely-backed Aerofugia, which is focused on building a <a href="https://rwegrgdf5.eu.org/aerofugia-plays-the-long-game-by-focusing-on-passenger-evtol-aircraft">tiltrotor passenger eVTOL aircraft with smart cabin features</a>.
In addition to its Dubai test flight, Aridge has conducted public demonstrations in recent years to raise awareness of its technology, including a <a href="https://rwegrgdf5.eu.org/xpengs-flying-car-lifts-off-in-shanghai-bringing-urban-air-mobility-closer-to-reality">high-profile test run</a> of the Land Aircraft Carrier in Shanghai’s Lujiazui district in December 2024.

Xpeng-backed Aridge raises funding to advance modular flying car production

Xpeng Motors

East Asia

China

Venture Capital

Transportation

Electric Vehicles

Mobility

Investment

eVTOL Aircraft

… OpenClaw deployment experience. In the future, we may explore ways for local and cloud versions to interact or merge.
<h3>36Kr: Pony Ma has said Tencent strongly supports internal incubation of AI applications. What kind of resource support do these teams receive?</h3>
ZY: For the lightweight cloud business, the biggest support comes from computing resources.
Teams behind Tencent Docs, Tencent Maps, and the Emma knowledge base also provide a growing ecosystem of skills that expand potential use cases.
We also launched SkillHub, a skill marketplace designed to be safer and more accessible for Chinese users. It addresses issues such as overseas access failures and compliance filtering.
Different teams operate differently, but overall everyone is moving quickly within their respective domains.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3721355722684804">article</a> was written by Wang Yuchan for 36Kr.

Tencent gets bolder with agentic AI as OpenClaw sparks hype and competition

Artificial Intelligence

Deep Tech

Fundraising by Southeast Asian startups remained subdued last year, with more businesses forced to shut down operations or reduced to "zombie" companies surviving without fresh capital.
According to research by DealStreetAsia, the region's startups raised USD 1.16 billion in October-December 2025, slightly down from the same quarter a year earlier. For the full year, funding increased 18% to USD 5.4 billion, but that was still about a fourth of the level seen in <a title="" href="https://asia.nikkei.com/spotlight/market-spotlight/gold-rush-asean-startup-fundraising-more-than-doubled-in-2021" target="_blank" rel="noopener">the peak year of 2021</a>.
Crunchbase data shows that global startup funding rose about 30% in 2025, highlighting that Southeast Asia has lagged in the recovery from what has been called a "<a title="" href="https://asia.nikkei.com/spotlight/the-big-story/from-grab-to-goto-southeast-asia-s-startups-weather-funding-winter" target="_blank" rel="noopener">funding winter</a>."
"We are seeing more companies consider pivoting their business or selling assets," one venture capitalist investing in the region said to Nikkei.
According to media reports, a number of the region's startups have closed since 2023, including two Singapore-based entities, biotech firm Tessa Therapeutics and fintech company Pace Enterprise, which offered "buy now, pay later" services.
One noteworthy example is Indonesia's Ula, a B2B wholesale platform for mom-and-pop shops. After years of struggle, the company formally announced the closure of its business in a social media post last August.
Once touted as a rising star in Indonesia, and having former Amazon employee Nipun Mehra as one of its founders, Ula attracted prominent investors, such as the family office of Amazon founder Jeff Bezos, Sequoia Capital, and Tiger Global, who bet on the startup's technology-driven model that would <a title="" href="https://asia.nikkei.com/business/startups/digitalizing-indonesia-s-mom-and-pop-economy-draws-investors" target="_blank" rel="noopener">reform inefficient distribution systems</a> in the emerging market.
But soon after Ula was founded in 2019, the Covid-19 pandemic disrupted its launches of sales operations and logistics hubs.
Mom-and-pop shops are scattered across wide areas, making last-mile deliveries from distribution centers costly and labor-intensive. Ula sought to improve efficiency by having shop owners pick up goods from "group pickup points" located a kilometer or two away, but achieving early profitability proved difficult.
As the fundraising environment deteriorated after 2022, Ula concluded that further expansion would be difficult and announced a temporary suspension of its business in 2023. Conditions did not improve and the company gradually shut down operations.
"By late 2022, market realities had shifted," the company said in the social media post. "We explored pivots, ran experiments, and pushed creativity, but the road to long-term profitability stayed steep."
The tougher funding environment came as global monetary tightening began in 2022. Yields on the benchmark ten-year US Treasury climbed from the 1% range in 2022 to around 5% at one point in 2023. As bond yields rise, usually in tandem with interest rates, their prices fall, and investors tend to favor lower-risk assets such as these government bonds rather than high-risk investments like startups.
"The exuberance of the earlier years seems to have been tempered by the challenging market and exit conditions," Maisy Ng, managing partner at Singapore-based Delight Capital, which did not invest in the startups mentioned above but does back others, told Nikkei. "Startups need to show that they can make money and that the business model can scale."
Takahiro Suzuki, general partner at venture capital firm Genesia Ventures, which also did not invest in the above startups, pointed out that one reason for the slow funding recovery in Southeast Asia compared to India or the West is the lack of "down rounds" in which a company raises new funds at a lower valuation than its previous round.
"Down rounds are less likely to occur in Southeast Asia," he said, explaining that in the US, Europe, and India, venture capital firms have a longer history, so their shareholders are more willing to accept down rounds because gains realized from other investments can offset the losses.
In contrast, many local funds in Southeast Asia are relatively new and lack a strong track record, making them more inclined to oppose down rounds that would reduce the value of their holdings, he said. As a result, some companies are unable to raise fresh capital, are forced to cut operating expenses and end up becoming zombies.
Worse, a few high-profile scandals involving well-funded startups, including <a title="" href="https://asia.nikkei.com/business/startups/ex-ceo-of-indonesian-aquaculture-unicorn-detained-in-fraud-probe" target="_blank" rel="noopener">accounting fraud at aquaculture tech company eFishery</a>, has fueled investor concerns over corporate governance in the region's startups.
Looking at recent large fundraising deals, a shift in sectors is evident. In the past, the startups raising large amounts of funds were digital consumer businesses, such as ride-hailing group <a title="" href="https://asia.nikkei.com/business/companies/singapore-s-grab-aims-to-triple-profit-by-2028-after-1st-year-in-black" target="_blank" rel="noopener">Grab</a> and <a href="/industry/e-commerce">e-commerce</a> group <a href="/company/sea-group">Sea</a>.
According to DealStreetAsia research, however, the biggest deal last year was USD 1.3 billion in fundraising by Singapore-based data center operator Princeton Digital Group, underscoring rising demand for the essential infrastructure for digital services driven by the growing use of artificial intelligence.
In a distant second with USD 188 million was UltraGreen.ai, which provides fluorescent technology used in surgery. The company listed on the Singapore Exchange in December.
"Regardless of market situation, we always like to invest in 'painkillers' rather than 'vitamins,'" said Delight Capital's Ng. "If a company provides a solution that solves their customers' pain instead of a 'nice-to-have' solution that can be expended with when the budget shrinks, they will always find a way through, even in difficult market conditions."
This article first appeared on <a href="https://asia.nikkei.com/business/startups/asean-startup-funding-drought-risks-creating-more-zombie-firms">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.rwegrgdf5.eu.org/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

ASEAN startup funding drought risks creating more zombie firms

… border-top: 1px solid #e8e8e8;">Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Didi’s core business remains strong as global expansion pressures earnings

Didi

… to prepare [as if the] situation in the Middle East would be a long one, which will drive up the oil costs and sequentially affect people's daily spending willingness and affect the global demand," the tech industry veteran told reporters on March 11, adding that the situation is "a big test for tech suppliers' risk management."
Kai-Chen Lo, an industry analyst with the Taiwan Institute of Economic Research, said naphtha cracker costs could rise in the short term and the supply of certain petrochemical products could be temporarily affected in light of the force majeure notices sent by Asian petrochemical companies.
Most petrochemical companies that have not yet issued force majeure notices can respond to the naphtha supply issue by adjusting inventories or sourcing alternatives for the short term, she said.
"However, if upstream supply reductions expand or persist, impacts could gradually transmit downstream to industries such as rubber and plastics raw materials and plastic product manufacturers," the analyst told Nikkei Asia. "We have to closely monitor the logistics situation and the price trends of raw materials to see how the situation unfolds."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/exclusive-asian-executives-flag-rising-supply-chain-risks-from-iran-war">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.rwegrgdf5.eu.org/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Asian executives flag rising supply chain risks from Iran war

Logistics

Singapore

Malaysia

Thailand

Vietnam

Indonesia

Philippines

Japan

South Korea

Hong Kong

Southeast Asia

Huawei veterans raise funding for startup powering AI data centers

AI Infrastructure

Diagens Biotechnology has passed a listing hearing with the Hong Kong Stock Exchange and disclosed its post-hearing prospectus on March 15, with Huatai International serving as the sole sponsor. The move puts the Hangzhou-based firm on track to become the world's first publicly listed company offering <a href="/industry/ai">artificial intelligence</a>-driven tools and solutions built on a medical imaging foundation model.
Founded in 2016, Diagens develops medical imaging products and services. Its portfolio includes six medical imaging software products, three commercialized medical devices, four key reagents and consumables, and two technology licensing products.
At the center of its lineup is AI Autovision, a chromosome karyotyping-assisted diagnostic software designed for chromosome analysis. The product targets applications including birth defect prevention, premarital and preconception screening, and assisted reproductive technology.
Clinical trials of AI Autovision have been completed, and an application was submitted in May 2025 to the National Medical Products Administration for registration as a Class 3 medical device. In the same month, the regulator designated it an innovative Class 3 medical device, allowing the product to enter an accelerated approval process.
In a multicenter clinical trial involving 1,518 real-world samples, AI Autovision achieved a sensitivity and specificity of 100% in detecting numerical chromosomal abnormalities. For structural abnormalities, the system recorded a sensitivity of 94.05% and a specificity of 100%.
The company said the average analysis time per case is more than three times faster than conventional manual systems, highlighting the potential clinical value of AI-assisted analysis in complex medical imaging tasks. The claim is attributed to the company and is not independently verified.
Beyond its flagship product, Diagens has developed a full workflow solution for chromosome karyotype analysis that spans sample preparation through result interpretation. Its lineup includes the Autovision chromosome analysis software, Kayoflow automatic cell harvester, Kayoflow slide preparation and staining system, and Metasight automated cell microscopic imaging scanner.
According to Frost &amp; Sullivan, Diagens ranked first in China's chromosome karyotype analysis market by revenue in 2024, with a 30.6% market share.
Chromosome karyotype analysis remains the gold standard in cytogenetic diagnostics. It is widely used in preconception screening, assisted reproductive technology, inherited metabolic disease diagnosis, and hematologic cancer research.
The mainland China market for chromosome analysis is projected to expand to RMB 2.038 billion (USD 294.9 million) by 2030 and RMB 6 billion (USD 868.3 million) by 2035, according to Frost &amp; Sullivan. Diagens said its current market position could allow it to capture growth as demand increases.
The company attributes the performance of AI Autovision largely to iMedImage, its proprietary model.
iMedImage is a general-purpose foundation model designed for reasoning-oriented learning and training in medical imaging. Built on this architecture, Diagens is developing customized AI models and tools for targeted disease diagnosis and treatment applications.
As of March 10, iMedImage reportedly supports 19 medical imaging modalities and covers more than 90% of clinical medical imaging scenarios, including reproductive health, hematologic malignancies, and other clinical applications. According to the company, its cross-domain generalization capabilities have been validated across multiple environments and imaging formats, including microscopic imaging, obstetric ultrasound, CT imaging, and microscopic video.
Diagens plans to further develop the iMedImage foundation model to improve its generalization capability and reasoning efficiency. It also intends to expand computing capacity to process large-scale medical imaging datasets more efficiently, while extending cloud services to support deployment across clinical environments.
The firm also plans to extend the model to additional medical imaging modalities and clinical specialties to broaden its applications.
To accelerate the healthcare sector's transition toward smart systems, Diagens intends to license the iMedImage model for localized deployment. The company said this approach could help address a challenge in remote areas where medical equipment is available but specialized expertise is limited. It also plans to allow hospitals and medical experts to train disease-specific models tailored to their own clinical needs.
Policy support may further reinforce the company's strategy. Last October, the National Health Commission, together with four other government agencies, issued guidelines promoting and regulating healthcare applications that use AI. The policy calls for AI-assisted medical imaging diagnostic services to become widely available in hospitals classified as secondary level and above nationwide by 2030.
Financially, Diagens reported revenue of RMB 112 million (USD 16.2 million) in the first three quarters of 2025, up from RMB 20 million (USD 2.9 million) in the same period of 2024. Gross margin during the period reached 75.9%.
Since its founding, the company has attracted investment from institutions including Goldport Capital, Meihong Investment, Grand Flight Investment, Liyuan Investment, Jiayuan Venture Capital, Guozhong Capital, Winning Venture Capital, Tenghua Investment, Yuhang Economic Development Zone, Sinowisdom, Yingboli Investment, Huabao Venture Capital, Blue Shell Capital, and Huadan Investment.
According to the prospectus, proceeds from the planned IPO will primarily be used for the R&amp;D and commercialization of AI Autovision, development of other medical imaging software candidates and medical devices, advancement of the iMedImage foundation model and related AI technologies, expansion of the company's technology licensing business, strengthening commercialization capabilities and market penetration in China, expanding global operations, pursuing strategic partnerships and investments across the healthcare value chain, and general corporate purposes.
This <a href="https://xueqiu.com/2854806290/379509716">article</a> was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Diagens nears IPO with medical imaging AI, foundation model

Health Tech

On March 13, at the Appliance &amp; Electronics World Expo 2026, Yang Xiangwen, head of Mova's white goods division, unveiled a new product called Airbot. The compact device functions as both a mobile air conditioner and what the company describes as a spatial terminal for smart climate control. Its introduction drew attention at the event and raised questions about whether there's room to reshape how air conditioning systems are used.
While many traditional white goods manufacturers continue to compete through promotions and price cuts, Mova is experimenting with a different approach. With Airbot, it is attempting to challenge longstanding assumptions about how air conditioning systems are installed and used by introducing a freely mobile cooling device.
Historically, the installation point of an air conditioner has shaped how people use indoor space. Cool air from a unit in the living room rarely reaches the bedroom, and cooling from a study seldom extends to areas such as balconies. This fixed model often clashes with the flexible living patterns common among younger households.
Airbot addresses this limitation by separating the air conditioner from the wall and turning it into a mobile unit. Equipped with a human tracking sensor, the device can locate users in real time and move toward them using omnidirectional wheels at its base. The system directs airflow toward the user, allowing cooling to follow the person through different parts of a home.
The design may appeal to renters who cannot install permanent air conditioning units. It could also reduce the need for multiple systems in large homes or open-plan spaces. In theory, a single device could move between rooms rather than requiring a separate unit for each area.
In residential environments, Airbot can travel between living rooms, bedrooms, studies, balconies, gardens, and courtyards. The system is designed to adjust its cooling settings automatically based on the surrounding environment, reducing the need to install dedicated air conditioners in spaces such as kitchens or bathrooms.
In commercial settings, the device could operate in offices, retail stores, and exhibition halls, where localized cooling may be useful. Outdoors, it may provide temporary cooling during activities such as camping or fishing, according to the company.
Yang said Airbot is intended to transform air conditioners from what he described as a “spatial accessory” into a scenario-based component of everyday environments. According to him, this shift could change how consumers think about air conditioning.
Industry observers told 36Kr that Airbot may represent an early version of a broader product category. Mova is reportedly exploring additional spatial climate solutions. Future systems, according to these observers, could adjust airflow paths based on building layouts or maintain balanced temperature and humidity across an entire home without requiring manual adjustments.
Another notable aspect of Airbot is its interaction model. Instead of relying solely on direct user commands, the system is designed to sense environmental conditions, make decisions, and execute actions autonomously.
Autonomy in <a href="/industry/robotics">robotics</a> generally refers to a closed loop that combines perception, decision-making, and action without constant external input. Mova said Airbot demonstrates this capability in three areas:
<ol>
<li aria-level="1">Perception: Airbot's sensor system collects environmental data and analyzes it using algorithms that identify behavioral patterns and potential user needs. For example, if the system detects that a user repeatedly turns off the air conditioner around 10 p.m, it can learn this routine and automatically switch to sleep mode at the same time in the future.</li>
<li aria-level="1">Decision-making: Airbot runs on an <a href="/industry/ai">artificial intelligence</a> platform with local computing capabilities. According to the company, the device processes environmental data on the unit itself rather than relying entirely on cloud servers. This design may reduce response time and limit the amount of user data transmitted externally.</li>
<li aria-level="1">Execution: The system can adjust airflow temperature, wind speed, and direction automatically. In future iterations, it may also reposition itself within a space to deliver cooling where it is needed most, according to Mova.</li>
</ol>
This approach differs from conventional smart air conditioners, which typically respond only to commands issued through remote controls or mobile apps. Airbot is designed to interpret patterns and adjust its behavior accordingly.
Another feature highlighted by the company is its learning capability. Mova said the system's algorithms improve over time as they analyze user behavior. Each device functions as a localized learning terminal, gradually adapting to its owner's habits.
The company also said that anonymized feature data could be shared across devices to improve system performance while protecting personal information. Some industry insiders compare the concept to Tesla's autonomous driving data network, where aggregated data helps refine system performance across a fleet.
At its core, Airbot rethinks how temperature control operates across different environments. As a mobile air conditioning robot, it blends characteristics of home appliances with those of autonomous systems.
As sensing technologies and local computing capabilities improve, more household appliances may incorporate robotic features. Devices that integrate terminal functionality with autonomous operation could become more common, interacting with both users and their surroundings.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3721247974766981">article</a> was written by Xiao Xi for 36Kr.

Mova's Airbot turns air conditioning into a moving climate companion

Robotics

Consumer Economy

Controversy surrounding Meizu that had been simmering since before the Lunar New Year appears to have reached a turning point.
According to information obtained by 36Kr from internal sources, Meizu recently announced a major restructuring that will see more than half of its employees leave the company, affecting roughly 400 people.
Those departing face three possible outcomes. Some will receive severance packages exceeding the legal minimum, others will move to newly separated business units, while a third group may be absorbed by partner companies. Most employees were expected to complete the necessary procedures by March 13.
As part of the restructuring, 36Kr reported that Meizu's Pandaer lifestyle technology brand team will be spun off to operate independently, taking responsibility for its own profits and losses. Meanwhile, part of Meizu's augmented reality glasses team is expected to be absorbed by the AR hardware company RayNeo.
Earlier, on February 27, Meizu attempted to address growing speculation, stating that it had decided to suspend in-house development of new smartphone hardware and was in discussions with third-party hardware partners.
After the restructuring, the remaining smartphone-related staff at Meizu will number about 400. According to 36Kr, those who remain are expected to be reassigned in two directions. Some may join the team working on Meizu's Flyme automotive operating system, while others may shift toward <a href="/industry/ai">artificial intelligence</a> software development.
In addition, the core assets of Meizu's smartphone division have already been packaged and integrated into hardware companies within the <a href="/company/geely">Geely</a> ecosystem. These assets include software code, product documentation, technical interface documentation, engineering code libraries, and visual interaction materials.
A source familiar with the matter said most of the remaining staff are concentrated in Zhuhai, where Meizu's headquarters is located. The team is unlikely to continue operating under the Meizu brand, and employees may eventually transition to a new corporate entity.
In response to inquiries from 36Kr, Meizu said Flyme's open ecosystem will become the company's foundation moving forward, forming what it described as a sustainable, closed-loop business model.
“Organizational adjustments accompanying strategic transformation are a normal part of industry development,” the company said. “Aside from suspending domestic smartphone hardware R&amp;D, all other businesses are progressing steadily.”
Meizu added that its overseas smartphone business, AI-powered smart glasses, and Pandaer brand continue to operate normally. It also denied reports that its AR team would be absorbed by RayNeo, calling the claim inaccurate.
For many employees, signs of disruption had already emerged before the holiday.
In the weeks leading up to the Lunar New Year, Meizu began terminating outsourced staff, slowing internal approvals, and extending the holiday break while delaying the official return-to-work date. Many employees interpreted these moves as signals that the smartphone business was under pressure.
According to 36Kr, the smartphone division still had a narrow window for survival earlier this year. Before the holiday, the team reportedly attempted to pursue an acquisition by a well-known AI company, but negotiations ultimately failed.
“The other party believed the Meizu brand had no value,” a source familiar with the talks said.
In its earlier announcement, Meizu identified one major factor behind its shift: rising memory prices.
“The level of competition in the smartphone market is far beyond imagination,” the company said. “With memory prices skyrocketing, the commercialization of new smartphone products has become increasingly difficult.”
A recent report from Counterpoint Research showed that in the first quarter of 2026, DRAM prices rose 50% quarter on quarter, while NAND flash prices surged more than 90%.
The increase has significantly altered the bill of materials structure of smartphones.
According to the report, memory now accounts for 43% of total device costs for smartphones priced below USD 200, representing a 25% quarter-on-quarter increase. For smartphones priced above USD 400, memory costs are expected to account for 20–23% of total device costs by the second quarter of 2026.
The rise in memory prices has compressed profit margins across the smartphone industry.
Since late last year, China's smartphone market has entered a period of instability.
In January, smartphone brand Realme announced that it would return to the Oppo system, aiming to improve efficiency through deeper integration.
By March, many smartphone makers had introduced the largest collective price adjustments in nearly five years. Oppo, OnePlus, Vivo, <a href="/company/xiaomi">Xiaomi</a>, and Honor raised prices across multiple product tiers by around RMB 500, (USD 72.4) with some models abandoning the segment below RMB 1,000 (USD 144.7) altogether.
The withdrawal of Meizu's smartphone business also reflects how the surge in artificial intelligence investment is reshaping established technology sectors. Companies across the industry are reassessing their priorities, shifting resources toward AI, software, and ecosystem development while hardware margins tighten.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3721227876039047">article</a> was written by Qiu Xiaofen for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Meizu slashes workforce as smartphone unit winds down

Smartphones