Honor Launches First Foldable Phone to Challenge Samsung

Barcelona, Spain – Honor is set to launch a foldable phone this year, as stated by the company’s CEO to CNBC, marking the Chinese tech company’s first foray into the vertically foldable smartphone style popularized by brands like Samsung and Motorola.

The term “foldable devices” refers to smartphones with bendable screens. There are currently two types in the market – smartphones that fold like a book and those that fold vertically like the old-school flip phone but without a visible hinge.

The move to release a foldable device aligns with Honor’s push towards the premium end of the market as it seeks to challenge companies like Samsung and Apple.

In an exclusive chat with CNBC at the Mobile World Congress in Barcelona, George Zhao, the CEO of Honor, excitedly shared, “We’re gearing up to launch the foldable phone this year – right now! that we have reached the final stage internally.”

“We’re really excited about foldable gadgets and their potential in the future!”

Honor already has several foldable phones on the market. The latest is the Honor Magic V2 launched last year. However, all current foldable devices from Honor are of the book-style folding.

Entering the foldable device arena will expose Honor to a different price point. Foldable phone prices, such as Samsung’s Galaxy Z Flip 5, are often cheaper than horizontally folding devices.

Foldable devices are seen as cutting-edge in the smartphone world. Counterpoint Research predicts that sales of high-end smartphones, which are priced at $600 and above, will continue to rise in 2023 despite a general decline in the overall smartphone market. This is one reason why Honor is targeting the upscale market.

Foldable phone sales are expected to rise by 40% annually to 22 million units in 2024, according to Counterpoint Research. However, Neil Shah, Partner at Counterpoint Research, said demand for foldable devices may slow down because “the high pricing expectations for the foldable form factor have been challenging.”

“I believe this will open up opportunities for new players to enter or grow in the market, giving them a chance to test the waters.”

Honor, which separated from Huawei in 2020 due to US sanctions, seeks to thrive as an independent brand. Honor has seen early success in China and is now focused on growth in international markets, where it has not yet appeared among the top 5 players globally.

Zhao hopes that within the next three to five years, sales outside of China will surpass domestic sales.

Artificial intelligence is driving Honor
Like most hardware makers at MWC, Honor touted the capabilities of artificial intelligence.

For Zhao, the value of the technology will come when the device can anticipate what you want to do next.

For example, you may receive a message from a friend to meet for dinner, and the device can predict whether you want to open the restaurant’s name in the maps app or reply to the message.

“In the near future, Honor aims to change how people engage with artificial intelligence, making it more accessible and intuitive for users. It’s all about understanding your needs and intentions when you engage with your phone. So, imagine a future where your phone truly gets you and responds accordingly. That’s the vision Zhao shared.”

At MWC, Honor showcased an AI-powered feature on its Magic 6 Pro phone that can track the user’s eyes.

The company also demonstrated a chatbot built on the Llama 2 AI model from Meta.

Just last year, Honor made it known that they were planning to go public. Zhao said preparations are underway for the initial public offering, but there is no timing or final destination for the listing yet.”