Huawei Spinoff Honor Takes Aim At Samsung In Foldables; Shrugs Off U.S. Sanction Concerns
- Honor unveiled two high-end smartphones this week, the Magic Vs and the Magic 5 Pro, as the Chinese smartphone maker looks set to compete with Samsung and Apple in the high-end market.
- In a lengthy interview with CNBC, Honor CEO George Zhao talked about the company's strategy to compete with Apple and Samsung and hinted at a new foldable phone.
- Huawei's honor also eased fears that US sanctions would cripple its parent company's business.
© CNBC Honor Magic Vs was unveiled at the Honor Pavilion at the Mobile World Congress in Barcelona The roughly $1,700 device is Samsung's attempt to challenge Honor in the foldable market.Honor CEO George Zhao has a simple philosophy: build the best products and track the sales performance of Chinese phone makers.
In a rare and high-profile interview with international media, Zhao talked about the company's strategy to compete with Apple and Samsung and hinted at a new foldable phone.
Huawei's honor also eased fears that US sanctions would cripple its parent company's business.
Credit goes to Apple and Samsung
Honor launched its Magic Vis foldable phone outside of China this week for around $1,700. Honor Magic5 Pro, the high-end flagship phone is out.
Under Huawei, Honor has focused on mid-range phones. But the company is now looking to break into the high-end market dominated by Apple and Samsung.
Zhao is aware of the challenges he faces in his pursuit of fame and is focused on growth.
“Our goal (today) is to make things better ... and going forward, the goal is to make our customers happy. and how to build trust and relationships with our partners. And those two things, [if we do] healthy, then growth, goals, sales numbers will come to us," Java said.
"If you look for a strong voice, you will eventually lose."
Honor launched its first phone outside of China last year after being sold by Huawei in 2020. And fame is a tough time to break into the market. By 2022, smartphone shipments are down to their lowest level since 2013. But according to Canalys, smartphones priced above $800 will account for 18% of the total smartphone market in 2022, up from 11% in 2020.
That is why respect stands behind this category. But the reputation still lags behind Apple and Samsung.
According to Counterpoint Research, the company will have a global market share of 4.6% in 2022, followed by Samsung at 21.2% and Apple at 18.3%.
More twists to come
Honor had a strong presence at Mobile World Congress in Barcelona this week, showcasing its latest products, emphasizing its ambitions to become a global player. This was alongside Samsung's display, which highlights the South Korean giant's desire to look like a giant.
Glory had a large Magic VS banner with the slogan "Work Your Magic".
© By CNBC The world's largest mobile trade show has a big presence at the Mobile World Congress in Barcelona The company showcased its latest flagship devices including the Magic Vs.Folding was the star of the show. Foldable devices were pioneered by Samsung, which launched its first phone in 2019. Other companies, mostly Chinese, have followed suit. And now they are starting to spread all over the world. These smartphones have a foldable screen.
While Oppo launched the Find N2 Flip last month, the CEO of Motorola-owned Lenovo told CNBC that another Razr foldable phone will be released this year.
A year ahead, according to research firm IDC, foldable devices will make up just 1.1% of smartphone shipments in 2022, and that number is expected to grow to 2.8% in 2026. But despite challenges including weight, Zhao believes there is a future for these devices. And the battery life of these smartphones today.
Zhao would not discuss sales targets, but said he is focused on producing the best folding products that will help him grow.
“Our aim and goal is to develop the best foldable phone, so be the first foldable phone technology. If we do that, I think the market will be better and better, and the brand, all this can be translated into the performance of this product. ", he told CNBC.
Today, in book form, Magic vs. Other companies, including Samsung and Oppo, have released devices that fold like a traditional cell phone. Honor doesn't have such a phone, but Zhao said the company is "seriously" considering it.
"Honestly we have this speculation about what, how and when, I can't say too much, but this aspect ... we take it seriously," he said.
Honorable history of Huawei
Honor was a brand of Chinese telecom giant Huawei. But in 2020, US sanctions cut off access to Huawei's core chips and Google's Android software, hampering the company's mobile business. At one time Huawei was the first in the world.
To keep the brand alive, Huawei sold Honor in 2020 to a consortium of buyers, including the government of Shenzhen, where the company is headquartered.
This allows Honor to keep track of the critical chips and software it needs. Honor launched its first smartphone as an independent brand in January 2021.
So far, the reputation has stemmed from the geopolitical and technological battle between the United States and China. And CEO Zhao isn't worried about the same ban being imposed on Huawei as it has finally earned a neutral reputation.
“So why should we worry? Our business model is similar to Oppo, Vivo and Xiaomi,” Zhao said, referring to other Chinese smartphone makers that are not banned.
"We give our value to the industry and the end consumer and the market, our partner, moreover, you know that it is open competition and open market, we follow all principles, we develop our business, in this country."
