Honor, Huawei’s budget spin-off brand, will launch its first foldable phone outside of China in 2019, according to Bloomberg citing people familiar with the matter. The device will be announced at an event on October 22 in London and unveiled on October 23 in Beijing, said the people, who asked not to be identified because the plans aren’t public. While Honor is best known as an affordable smartphone brand, it will compete directly with Samsung Electronics Co., which also offers both high-end and lower-cost devices under the Galaxy name.
In an effort to compete with Apple and Samsung on a worldwide scale, Honor, the smart device firm that was split off from troubled Chinese tech giant Huawei, aims to introduce a foldable phone in foreign markets.
The business revealed on Friday that it will be releasing the mid-range Honor 70 smartphone in Europe, along with an unnamed foldable phone, in the future. According to the business, it will be the first time Honor introduces a foldable tablet outside.
Outside of China, where it has less than 1% of the market, Honor has a steep uphill road ahead of it.
In order to avoid American penalties, Huawei sold the brand to a group of Chinese purchasers in late 2020. A slew of American penalties that restricted Huawei’s access to Google software and critical processors in 2019 and 2020 destroyed the company’s smartphone business.
Honor has since introduced a variety more smartphones. It launched its newest Magic 4 cellphone this year in foreign countries.
Honor is focusing on the more costly high end of the smartphone market outside of China in addition to the impending foldable phone.
As a result, Honor will face up against Samsung’s most recent foldable smartphones, the Galaxy Z Flip 4 and Galaxy Z Fold 4.
According to James Manning Smith, senior analyst at CCS Insight, “the high end has stayed robust, benefiting Samsung and Apple so far this year as the global economy has deteriorated in 2022.”
“One of Honor’s biggest difficulties this year will be trying to harness this trend, seeking to gain sales from well-established luxury brands, especially in a year where constrained budgets may result in consumers preferring to avoid possibly riskier purchases,” said a company representative.
According to Counterpoint Research, shipments of phones costing more than $1,000 increased 94% year over year in the second quarter. Apple and Samsung dominate this market.
However, Honor’s Chinese rivals Xiaomi, Oppo, and Realme have all succeeded in gaining market share abroad by producing mid-priced handsets with excellent specifications.
That will provide Honor with yet another obstacle.
Smith said, “Over the previous two years, Honor’s low-cost Chinese competitors have made some substantial inroads in the European market, a position that they will not give up without a fight.” Even while Honor has increased its marketing, it still confronts extremely tough competition outside of China.