Agentic AI, Foldables, and Regulation: Reshaping Devices in 2026
The devices market in 2026 is poised for a transformation, transitioning from basic AI demonstrations to advanced agentic execution. This evolution signifies the emergence of smartphones that not only generate content but also complete multi-step tasks across various applications. However, this capability will be introduced before the industry fully addresses critical challenges such as reliability, privacy, security, and liability when an AI agent acts on a user’s behalf.
Early Developments
Signs of this shift are already apparent. In late 2025, ZTE and ByteDance unveiled the Nubia M153, featuring the Doubao agent, designed to navigate third-party applications for tasks like booking travel and paying bills. Mainstream adoption of such capabilities is anticipated to be driven by platform-level agents from major players like Google, Apple, and Samsung. These companies are expected to position next-generation assistants as integral operating system features that orchestrate workflows, transforming smartphones from passive interfaces to digital workers.
Technological Advancements
High-performance silicon, such as Qualcomm’s Snapdragon 8 Elite, combined with emerging agent frameworks, will facilitate more on-device and hybrid executions. This technological advancement will set the stage for new user experiences.
Regulatory Landscape
Regulation will be another significant factor influencing the devices market, resulting in fragmented experiences across different regions. In the EU, the AI Act is expected to shift from rulemaking to enforcement, leading to increased audits, compliance assessments, documentation requirements, and penalties, particularly for high-risk systems. In contrast, the US landscape will likely remain sector-led, influenced by federal agencies, state laws, and procurement rules, while Congress debates baseline requirements for safety, privacy, and content provenance. Meanwhile, China will continue its centralized governance approach, expanding licensing, security reviews, and watermarking, emphasizing social stability, data control, and domestic innovation.
Innovation in Hardware
Hardware innovation, especially in the foldable device segment, is expected to accelerate. The category is set to receive a substantial boost in 2026, driven by two main catalysts: the much-anticipated launch of the first foldable iPhone and Samsung’s plans to expand tri-fold devices into broader markets. Competitors such as Oppo, Xiaomi, and Huawei are also likely to introduce tri-fold designs, intensifying competitive pressure on pricing and durability while increasing consumer awareness of new form factors.
Wearable Technology
Wearables will progressively market themselves as AI-first health devices, transitioning from generic insights to more personalized coaching and risk alerts, while also adhering to regulatory limits for clinically-oriented workflows. Expectations include deeper integration of cloud services and on-device inference, enhanced sensors, and improved data linking across devices. New AI-centric form factors may re-emerge alongside traditional watches and bands, focusing on battery life and always-on utility.
Augmented Reality (AR) Glasses
AR glasses are expected to make incremental progress rather than a breakout leap. Development will focus on lightweight use cases such as notifications, navigation, translation, and calling, typically tethered to smartphones. However, challenges related to battery life, cost, and privacy concerns will likely keep adoption within niche markets, although carriers may position glasses as add-ons to shared data plans.
Economic Factors
Economic pressures will also play a crucial role, with component inflation—especially in memory—expected to increase the bill of materials (BoM) for smartphones, consequently driving up average selling prices (ASPs). Additionally, geopolitical factors will create chipset constraints and regional model fragmentation. The wildcard in this scenario remains semiconductor tariffs: even if final tariffs are limited, policy volatility will impose an “uncertainty cost” that both OEMs and consumers will feel in pricing and planning.
