Analysis of the Impact of NetEase Youdao AI Answer Pen's Generative Video Explanation Feature on Market Competitive Position

The upgrade of NetEase Youdao AI Answer Pen Space X marks a major leap for AI learning hardware from

to [1]. This breakthrough is not just a simple function upgrade but a in the interaction mode of educational hardware:

• Multimodal Fusion Experience
  : Dynamically presents the problem-solving steps of complex questions through a trinity of graphics, text, and sound, simulating real teachers’ step-by-step reasoning process and providing an immersive experience closer to real teaching [1]

• Large Model Technical Support
  : Deeply integrates the
  DeepSeek-R1 reasoning model
  with the self-developed educational large model “Ziyue”, building a strong technical foundation. As a leading domestic reasoning large model, DeepSeek-R1 provides basic capabilities for logical reasoning of complex questions [1]

• Personalized Emotional Interaction
  : Adds fun voices like “Taiyi Zhenren”, uses
  encouraging explanations
  to relieve learning pressure, making AI answers more “human-like”, upgrading from a cold tool to a warm “portable teacher” [1]

Space X is not just an answer tool but builds a complete

learning closed loop [1]:

• AI Wrong Question Notebook
  : Automatically accumulates error-prone questions and pushes similar training
• Personalized Consolidation Exercises
  : Intelligent recommendations based on learning data
• 4G Always Connected
  : Scene-based experience of scanning with a pen and answering questions anytime

According to public data, Youdao AI Answer Pen

[1]. This achievement has multiple meanings:

• Successful Concept Verification
  : Marks that domestic AI native hardware has passed the concept verification stage and entered the sustainable commercialization stage [1]
• High Market Recognition
  : Achieved rapid breakthroughs in a market environment with serious homogenization of intelligent learning hardware
• Leading Brand Position
  : Consolidated Youdao’s leading position in the intelligent learning hardware field [1]

NetEase Youdao (DAO) stock price has performed strongly over the past year:

• 1-Year Growth
  : +65.73% [0]
• 6-Month Growth
  : +28.82% [0]
• Current Market Value
  : 1.32 billion USD [0]

This performance reflects the capital market’s

for the prospects of Youdao’s AI educational hardware business.

The current AI educational hardware market presents a differentiated competitive landscape of

[2]:

Competitor Type	Representative Enterprises	Core Advantages	Key Shortcomings
K12 Education & Training Giants	Xueersi, Zuoyebang, Yuanfudao	Deep accumulation of teaching content and research teams	Relatively backward AI technology implementation capabilities; low product intelligence level [2]
Traditional Hardware Manufacturers	BBK, etc.	Strong supply chain integration capabilities; high cost-effectiveness	Weak core teaching research resources and content accumulation [2]
Technology Enterprises	iFLYTEK, Baidu, Youdao	High technical barriers; deep focus on intelligent diagnosis	-

: iFLYTEK AI Learning Machine ranked first in industry sales in Q2 2025, and has ranked first in high-end learning machine share for many consecutive years [2]

In this competitive landscape, Youdao AI Answer Pen has found a unique position through

and :

1. Product Form Differentiation
   • Different from tablet-based learning machines of iFLYTEK and Xueersi
   • Youdao chose the
     pen form
     , which is closer to students’ natural writing habits
   • Scene-based advantage of “scanning with a pen and answering questions anytime” [1]

2. Technological Capability Differentiation
   • Domestic first
     generative video explanation
     capability, breaking through the limitations of traditional text answers
   • Blackboard-writing style video explanation
     : Provides a more intuitive learning experience [1]
   • Supported by DeepSeek-R1 reasoning model, stronger reasoning ability for complex questions

3. Positioning Differentiation
   • “AI native learning hardware focusing on instant answers” [1]
   • Does not make “all-round” learning machines but
     deeply excavates the answer scene vertically
   • Builds the brand perception of “portable teacher”, forming a distinction from the “comprehensive tutoring” of learning machines

According to research report data [3]:

• 2025 Global Smart Education Market Scale
  : Expected to reach
  13 billion USD
  (about 94 billion RMB)
• AI Education Subfield
  : Annual compound growth rate
  exceeds 60%
• China Market Performance
  : 2025 smart education market scale is expected to exceed
  18 billion RMB
• Intelligent Learning Machine Penetration Rate
  : Expected to exceed
  40%
  in 2025

• 2030 Global Market
  : Expected to further climb to
  1.2 trillion RMB
• Compound Annual Growth Rate During the Period
  : Maintain a high level of
  21.7%
  [3]

This provides a huge

for Youdao AI Answer Pen.

1. Technological Leadership
   • Pioneered generative video explanation function, established
     technical barriers
   • Double engine
     of DeepSeek-R1 reasoning model + self-developed “Ziyue” educational large model
   • First-mover advantage
     of blackboard-writing style video explanation

2. User Experience Advantage
   • Immersive learning experience of multimodal fusion (graphics, text, sound)
   • “Human-like” fun voices to relieve learning pressure
   • 4G connection for anytime answers, covering multi-scene learning needs

3. Completeness of Learning Closed Loop
   • Complete learning path of answer → wrong question notebook → consolidation exercises
   • Personalized recommendations based on learning data
   • Role upgrade from “tool” to “partner”

4. Brand and Channel Advantages
   • NetEase Youdao brand awareness in the education field
   • Commercial verification of exceeding 100 million RMB in sales within one year of launch [1]
   • Consolidated leading position in the intelligent learning hardware field [1]

1. Fierce Market Competition
   • iFLYTEK occupies a leading position in the high-end learning machine market [2]
   • Education and training institutions like Xueersi and Zuoyebang have obvious advantages in content and teaching research
   • Price competition: Traditional manufacturers like BBK focus on cost-effectiveness

2. Pressure of Technological Iteration
   • AI technology develops rapidly, requiring continuous investment to maintain leadership
   • Quality and accuracy
     of generative video explanations need continuous optimization
   • Balance between hardware cost and performance

3. Market Education Cost
   • Generative video explanation is an innovative function, requiring education of user cognition
   • Large difference from traditional learning machine forms, user acceptance needs to be cultivated
   • Market popularization of the concept of “AI native hardware”

4. Profitability Pressure
   • From financial data, Youdao’s current net profit margin is only
     2.52%
     [0]
   • P/E ratio
     64.61x
     [0], high market expectations
   • Need AI hardware business to contribute more profits

1. Deepen Technological Advantages
   • Continuously optimize the quality and response speed of generative video explanations
   • Expand support for more subjects and question types
   • Explore integration of new technologies like AR/VR with video explanations

2. Market Penetration
   • Strengthen KOL and campus experience activity penetration [1]
   • Launch segmented products for different age groups
   • Enhance the brand perception of “portable teacher”

3. Product Ecosystem Expansion
   • Explore linkage with other Youdao educational products
   • Develop parent-side monitoring and analysis functions
   • Build an educational service ecosystem based on AI answer pens

1. Technological Evolution
   • Explore deeper application of multimodal large models
   • Research AI algorithms for personalized learning path planning
   • Layout cutting-edge fields like education metaverse

2. Market Expansion
   • Overseas market expansion opportunities
   • Cooperation with B-end educational institutions
   • Deep integration with school education systems

3. Business Model Innovation
   • Transform from hardware sales to “hardware + service” model
   • Diversified revenue sources like subscription system and value-added services
   • Build an educational service platform based on AI

The generative video explanation function of NetEase Youdao AI Answer Pen Space X has

impacts on the company’s competitive position:

1. Technological Dimension
   : Established unique technical barriers, achieving differentiation in the homogeneous competition of AI educational hardware

2. Product Dimension
   : Role upgrade from “tool” to “partner”, redefining the experience standard of AI educational hardware

3. Market Dimension
   : Exceeded 100 million RMB in sales within one year of launch [1], verifying the feasibility of the business model and consolidating the leading position in the intelligent learning hardware field

4. Strategic Dimension
   : Opened a unique path for Youdao in the AI education track, avoiding direct competition with giants like iFLYTEK in the traditional learning machine market

To truly transform this technological advantage into a sustained market leading position, Youdao needs to focus on:

• Technological Leadership
  : Continuously maintain the technological advantage of generative video explanations
• User Experience
  : Continuously optimize the quality, accuracy and personalization of video explanations
• Commercialization Capability
  : Improve profitability while maintaining technological investment
• Ecosystem Construction
  : Build a complete educational service ecosystem around AI answer pens

The generative video explanation function is a

for NetEase Youdao in the AI educational hardware market. It not only raises the technical threshold of products but also, more importantly, redefines the interaction mode and user experience of AI educational hardware. Against the background of rapid growth of the smart education market, this innovative function is expected to help Youdao establish in the fierce competitive environment. However, whether it can be transformed into a long-term market leading position depends on the company’s comprehensive capabilities in technological iteration, commercial execution and ecosystem construction.

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[0] Jinling AI Data - NetEase Youdao (DAO) Real-time Quotes, Company Overview, Historical Price Data

[1] Zhimeng Consumer Trend Report - “2026: AI Scene Power Enters the Deep Beachhead Period”
https://m.thepaper.cn/newsDetail_forward_32227707
http://ex.chinaily.com.cn/exchange/partners/82/rss/channel/cn/columns/sz8srm/stories/WS694e509ba310942cc4998d23.html
https://m.jiemian.com/article/13815150.html

[2] 21st Century Economic Report - “Education and Training Institutions Roll AI Learning Machines: Real AI or Pseudo Intelligence?”
https://www.21jingji.com/article/20251207/herald/a7340f6613c37713cbfc6650dedeea64.html
https://m.thepaper.cn/newsDetail_forward_32103428

[3] Yan Jing Bi Zhi Information Consulting - “2025-2030 Global Smart Education Market Scale Expansion and Segmented Track Opportunity Research Report”
https://www.yjbzr.com/reports/18163.html