Core Viewpoint - The article discusses ByteDance's strategic positioning in the AI hardware and smart terminal sectors, highlighting its cautious yet proactive approach to hardware development and market entry [1][4][11]. Group 1: Company Developments - Over the past year, ByteDance has been rumored to be involved in various hardware sectors, including smartphones, AI wearables, chips, and automobiles, positioning itself as a significant player in hardware manufacturing [2][5]. - Despite numerous rumors, ByteDance has consistently denied plans for new hardware products, such as the next-generation Doubao AI headphones and Doubao AI glasses, emphasizing a focus on AI capabilities rather than hardware production [5][7][10]. - The company has launched the Doubao mobile assistant in collaboration with ZTE, which sold out quickly, indicating strong market interest in its AI capabilities [3][12]. Group 2: Market Strategy - ByteDance's approach to hardware development is characterized by a preference for partnerships and collaborations rather than self-manufacturing, allowing for flexibility and reduced risk in a competitive landscape [10][16]. - The company has been strategically managing expectations by clarifying rumors and avoiding premature announcements, which helps mitigate market speculation and potential backlash [10][12]. - ByteDance's AI capabilities have been integrated into various industries, with its Volcano Engine model services covering over 100 sectors and achieving a market share of 49.2% in public cloud model service calls in China [12][18]. Group 3: Future Outlook - Analysts suggest that ByteDance's cautious approach to hardware exploration is a normal part of industry development, allowing the company to validate demand through low-risk initiatives like the Doubao mobile assistant [18][22]. - The company is expected to continue its strategy of low-profile development until it identifies a clear market opportunity, similar to its past approaches in other business areas [20][23].