CITIC Securities research reports pointed out that in 2024, the overall intelligence level and multimodal capability of AI models from top manufacturers will improve significantly. The speed of cost reduction at the inference end will exceed expectations, and large models will further move towards becoming "real-time AI assistants." The landing of edge-side AI has reached a critical point of explosion. From the perspective of the feasibility and necessity of AI terminals landing on products, we believe that the development sequence of subsequent AI terminals will be heavyweight products first (AI Phone); light products will follow (AIoT), and in the long run, they are expected to merge with mobile phone products. In the AI Phone direction, we recommend focusing on companies in the Apple supply chain that benefit from elasticity at the forefront; in the AIoT direction, we look at products such as headphones or smart glasses with cameras in the short term, and in the long term, AI+AR glasses have imagination space. We focus on companies that have high-quality card positions in SoC, optics, and assembly.