Core Viewpoint - Morgan Stanley's report highlights three potential paths for the development of AI in smartphones, emphasizing the importance of deep integration and collaboration between cloud AI and edge AI for optimal user experience and long-term competitiveness [1] Group 1: Potential Paths for AI Development - Existing smartphone manufacturers (OEMs) can develop their own comprehensive AI solutions, achieving 100% deep integration with mobile operating systems and seamless collaboration between cloud AI and edge AI [1] - Existing smartphone manufacturers may outsource cloud AI while developing edge AI technology independently [1] - Existing smartphone manufacturers could outsource both cloud AI and edge AI [1] Group 2: Competitive Analysis - Morgan Stanley believes that the recent collaboration between Doubao and ZTE is likely to follow the second or third path, but the first path is seen as providing the best user experience and stronger long-term competitiveness [1] - Among Chinese smartphone manufacturers, Huawei and Xiaomi are identified as having greater potential to succeed through the first path [1]