Ping An Securities' Research Reports stated to focus on the increase in AI smartphone penetration. National and regional subsidies range from 10% to 20%, which helps reduce the Consumer's cost of purchasing devices and stimulates demand from buyers. Although there have not yet been any truly heavyweight AI applications, Android manufacturers have already laid out AI applications around three major categories of commonly used functions: AI imaging, smart calling, and intelligent search. Apple has its self-developed A series with leading performance, and the iOS ecosystem has also laid a stronger foundation for AI applications. It is expected that in the future, based on the ecosystem, strengthening the integration of software and hardware, and advancing in multiple dimensions to solidify the foundation of AI software and hardware. Suggested companies to focus on: Luxshare Precision Industry, Goertek Inc., Lens Technology, and other Industry Chain companies.