ByteDance reportedly plans AI plug-ins on partner smartphones

ByteDance is moving forward with partnerships with smartphone makers including Vivo, Lenovo, and Transsion to preinstall AI-generated content (AIGC) plug-ins on their devices, according to multiple sources.

Vivo employees told that an agreement has been reached, with details now being finalized.

The plan targets mid-range smartphones priced above RMB 2,000 (US$284.5), launching first on new models and later expanding via over-the-air updates.

ByteDance plans to waive custom development fees and share revenue from token sales, traffic distribution, subscriptions, and secondary traffic with phone makers.

On December 1, ByteDance and ZTE released the Nubia M153 AI smartphone prototype with a preview version of Doubao, priced at RMB 3,500 (US$497.9).

Sources say ByteDance’s AI smartphone push will mainly focus on overseas markets.

🔗 Source: TechNode

🧠 Food for thought

Implications, context, and why it matters.

ByteDance’s overseas mid-range focus may shrink reach

ByteDance targets phones priced above RMB 2,000 ($285), which narrows its reach. Motorola (Lenovo’s smartphone brand) grew 23% YoY in 2024 with strength under $250 1, which sits below the target range.
Transsion, a China-based smartphone group popular in Africa and South Asia, leads the Middle East & Africa 2. Long-Term Evolution (LTE) still makes up about half of smartphone sales there 2, so many devices likely sit below RMB 2,000. Vivo ranked first in China and India in Q2 2024 3. Overlap with ByteDance’s price target across vivo, Lenovo, and Transsion is unclear without shipment data for models above $285.

App makers should test Doubao integrations before preloads grow

ByteDance has a revenue share plan with phone makers that covers token sales (AI usage tokens, not cryptocurrency) and traffic distribution. It also includes subscriptions and secondary traffic. If Doubao, ByteDance’s AI assistant, ships on many preinstalled devices with third-party access, developers could earn new revenue.
Doubao faces app access limits and struggles with dynamic content. Early agent-friendly hooks can win share. That means APIs and deep links that let an assistant perform actions inside an app. Focus efforts where vivo, Lenovo (including Motorola), and Transsion sell well. India fits, with vivo on top in Q2 2024 3. The brand’s shipments grew 82% YoY there and reached 13% of its global total 1. Latin America accounts for almost half of Motorola shipments 1 and saw 14.5% YoY smartphone shipment growth in Q2 2024 2.