The world is gradually transitioning into the era of hybrid artificial intelligence (AI), fostering the emergence of edge computing and the development of end devices capable of directly running generative AI applications. Since the fourth quarter of 2023, global smartphone brands have introduced their AI phones, offering users diverse experiences with generative AI applications. The development of large language models (LLMs) has become a focal point for smartphone brands seeking AI dominance, alongside the enhancement of smartphone chip computing capabilities, expected to be a key trend in AI phones this year. This report offers an overview of AI phones from the perspectives of generative AI and edge computing, highlighting key players focusing on LLMs and diverse AI applications, including smartphone brands and software service providers; explores the opportunities and challenges in the era of AI phones