Chinese consumer electronics firm Honor has announced the launch of its flagship foldable smartphone, the Honor Magic V2, in overseas markets. This move brings Honor into direct competition with industry giants Samsung and Apple in the high-end smartphone segment.
The Honor Magic V2 will be available for sale in Europe and other markets, excluding the United States, no later than the first quarter of 2024. The smartphone boasts all the latest features expected of a premium device, including a triple lens camera, Qualcomm’s latest mobile chipset, and storage options of up to 1 terabyte.
Honor initially released the Magic V2 foldable smartphone in the Chinese market on July 12, 2023. This launch is a significant step for Honor, as it aims to establish itself as a key player in the premium smartphone arena and expand its presence globally.
The company was spun off from Huawei, which faced several U.S. sanctions that impacted its access to vital technology and severely affected its smartphone business. Honor has been working to chart its independent path and secure a position in the competitive smartphone market since the spinoff.
The Magic V2 is Honor’s second foldable smartphone, allowing users to fold and unfold the entire device. It received a strong response in the Chinese market, with prices starting at 8,999 yuan ($1,235). However, pricing for international markets has not been announced yet.
Although Honor holds a relatively small market share compared to Samsung and Apple, it has been steadily growing. In the second quarter of this year, Honor commanded a 5.2% market share, up from 4.9% in the same period last year, according to IDC. However, the company remains heavily reliant on the Chinese market, which accounts for nearly 78% of Honor’s total smartphone shipments.
To improve its global standing, Honor aims to offer high-spec phones at competitive prices, especially in mature European markets like the U.K. By following a strategy similar to Huawei’s successful global expansion before facing setbacks due to U.S. actions, Honor hopes to emphasize top-notch technology and specifications.
However, the company faces significant challenges in competing with industry giants like Apple and Samsung, particularly in terms of raising its brand profile. Apple and Samsung enjoy advantages in terms of scale, research and development resources, and marketing clout. Building a well-known and respected name in the phone business takes time, which Honor needs to overcome.
Despite innovative features and specifications, Honor may struggle to convince consumers to choose its device over established industry leaders. As Honor was previously a subsidiary of Huawei, it was not widely recognized or present in many countries. While this lack of association with Huawei can be an advantage, Honor needs to establish itself as a trusted and premium brand.
Samsung and Apple currently dominate nearly 70% of the smartphone market in Western Europe, with Chinese brand Xiaomi holding a distant third place with 15% market share, according to Counterpoint Research. This highlights the challenge Honor faces in entering and gaining a foothold in these markets.
In addition to the Magic V2, Honor also unveiled a concept device designed to be worn like a handbag, showcasing the company’s commitment to innovative and unique product offerings.
Overall, Honor’s entry into the overseas market with its flagship foldable smartphone signifies its ambition to compete with established industry leaders and establish itself as a key player in the high-end smartphone segment.