Honor CEO George Zhao unveiled the company’s Honor 70 smartphone in Europe during a virtual presentation at the IFA trade fair in Berlin, Germany. Honor, which was spun off from Chinese tech giant Huawei in 2020, is looking to grow its market share outside of China.
Honor, a smart device company spun off from beleaguered Chinese tech giant Huawei, plans to launch a foldable phone in overseas markets. apple Samsung on the world stage.
On Friday, the company launched its mid-range Honor 70 smartphone in Europe, and said the unannounced foldable phone will also appear in the region and other international markets in the future. This is the first time it has done so, the company said.
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Honor faces an uphill battle outside of China, where its smartphone market share is less than 1%.
The brand was sold by Huawei to a consortium of Chinese buyers in late 2020 as a way to weather US sanctions.In 2019 and 2020, Huawei was hit by a number of US sanctions. Access to Google software and a key tip, destroy the smartphone business.
Since then, Honor has launched many smartphones. This year, the company launched its flagship Magic 4 handset to the international market.
Alongside its upcoming foldable smartphones, Honor is also focusing on the pricier premium end of the non-Chinese smartphone market.
This puts Honor in competition with Samsung’s latest foldable device — Galaxy Z Flip 4 and Galaxy Z Fold 4.
James Manning-Smith, senior analyst at CCS Insight, told CNBC, “As the global economy deteriorates in 2022, the premium end remains strong, benefiting Samsung and Apple so far this year. ” he said.
“One of Honor’s biggest challenges this year is trying to capitalize on this trend to capture sales from established premium brands, especially as consumers become more risky as a result of tighter budgets. It will be a year of trying to avoid expensive purchases.”
According to Counterpoint Research, shipments of handsets priced above $1,000 increased 94% year-over-year in the second quarter. This segment is dominated by Apple and Samsung.
But Chinese rivals, including Honor, XiaomiOppo, and Realme have also managed to capture market share overseas by successfully launching high-spec mid-range devices.
It poses another challenge to honor.
Honor’s “low-cost Chinese peers have been making serious inroads into the European market in the past two years, and they are in a position to give up without a fight,” added Smith. Honor has stepped up its marketing, but faces extremely stiff competition outside of China.