Behind the Success of Huawei’s ‘Smart Companion’: Who is the Invisible Champion in the AI Toy Market?
By the end of 2025, an AI emotional companion toy named ‘Smart Companion’ was sold out within seconds of its launch on the Huawei Mall, with a price of 399 yuan not dampening consumer enthusiasm. This electronic pet, which can chat, act cute, and has memory, not only made countless young people exclaim ‘healing’ but also sparked a fervent chase in the capital market for the new ‘AI + Toy’ track.
1. Phenomenal Bestseller: What Makes Smart Companion Sell Out?
According to data from Huawei Mall, the first batch of 100,000 ‘Smart Companions’ sold out within 3 minutes, setting a record for the fastest sales in the smart toy category. This product, co-developed by Huawei and Lobo Intelligent, is equipped with the Xiaoyi large model, supporting human-like voice interaction and long-term memory functions. When users stroke its head, it emits a pleasant humming sound; when users are feeling down, it even proactively tells jokes to cheer them up.
“This is no longer just a simple toy, but an emotional companion in the digital age,” said consumer electronics analyst Li Wei. “The demand for emotional companionship among Generation Z is giving rise to a new market worth hundreds of billions.”
2. In-Depth Analysis of the Industry Chain: Who is Sharing the AI Toy Pie?
1. Technology Empowerment Layer: Softcom Power, Runhe Software
As a core partner in Huawei’s AI ecosystem, Softcom Power occupies an irreplaceable position in the optimization of the CANN operator library. Runhe Software, as one of the first co-builders of the Harmony ecosystem, has jointly developed the Ascend AI integrated machine with Huawei, providing strong computing power support for smart toys. Industry insiders report that the two companies are actively laying out the AIoT track, with expected related business revenue to exceed 5 billion yuan by 2026.
2. Product Development Layer: Lobo Intelligent
This startup, valued at over 3 billion, has established a technological barrier in the AI companion robot field with its two blockbuster products, ‘Fuzai Fuzozo’ and ‘Smart Companion’. Its self-developed emotional computing engine can recognize over 20 types of micro-expressions and voiceprint features, with an accuracy rate of 91.3%.
3. IP Operation Layer: Aofei Entertainment
Traditional toy giants are accelerating their transformation. Aofei Entertainment, in collaboration with Honor, launched an AI interactive trendy toy robot featuring characters from the ‘Pleasant Goat and Big Big Wolf’ IP, achieving 500,000 orders during the pre-sale phase. The combination of ‘IP + AI’ has increased the repurchase rate of toys by more than three times.
3. Investment Opportunities: Three Main Lines to Capture Industry Dividends
1. Technology Breakthrough Targets
– Softcom Power: Core service provider for Huawei’s AI outsourcing, deeply involved in the optimization of Smart Companion’s algorithms.
– Caixun Co.: Holds patents for Xiaoyi intelligent algorithms, leading in NLP technology in China.
– Zhaowei Electromechanical: Supplier of micro drive systems, with a single machine value of 85 yuan.
2. Product Innovation Targets
– Aofei Entertainment: Over 200 IP reserves, with AI toy channel coverage reaching 63%.
– Xinghui Entertainment: Engaged in smart early education robots, with an ARPU value exceeding 1200 yuan.
3. Supply Chain Beneficiary Targets
– Hanwei Technology: Exclusive supplier of emotional sensors, maintaining a high gross margin of 68%.
– Keli’er: Core manufacturer of servo systems, certified by Huawei’s robot supply chain.
4. Risk Warnings: Three Major Concerns Behind the Frenzy
1. Technology Iteration Risk: Google’s DeepMind recently released the EmoGen model, which has surpassed the Xiaoyi large model in emotional interaction accuracy by 2.3 percentage points.
2. Valuation Bubble Risk: The average price-to-earnings ratio of AI toy concept stocks has reached 87 times, far exceeding the industry average.
3. Policy Regulation Risk: The EU has introduced the ‘AI Toy Data Security Act’, and related regulatory policies are being formulated domestically.
5. Future Outlook: The Market Size Will Exceed 80 Billion by 2026
According to iResearch Consulting, by 2026, the market size of AI toys in China is expected to reach 82.6 billion yuan, with a compound annual growth rate of 42%. As large model technology continues to break through and hardware costs decrease, smart toys are rapidly evolving from ‘novel toys’ to ‘household essentials’.
“This round of market activity has just begun,” revealed a private equity fund manager. “We are increasing our positions in the AI toy industry chain, especially in companies with core technologies that can produce differentiated products.”
Conclusion:
When cold technology is endowed with warm emotions, and toys evolve into living entities in the digital world, we witness not only the success of a product but also the dawn of an era. In this hundred-billion-level track, those who can find the best balance between technological innovation and emotional resonance will become the true winners.
(Note: The data in this article is as of December 1, 2025, and some information comes from corporate announcements, industry research reports, and expert interviews, and does not constitute investment advice.)