Honor has never sold as many smartphones as in recent months. The brand is even taking the number one spot in China, according to a study published earlier this month. Honor is even preparing an IPO to raise funds and accelerate its international development.
As you probably know, if you read, Honor has changed a lot in the last few months. Since it was bought by a consortium of about 30 companies, Honor is no longer under the control of Huawei. In other words, Honor is no longer subject to the U.S. embargo, can install Google services on its devices and claims to be independent of Huawei.
Despite this, it is clear that its products look like those of Huawei. The Honor 50 looks very similar to the Huawei Nova 9 presented in France shortly before. The Honor 50 Lite, on the other hand, takes the aesthetics of the Huawei Nova 8i. The Honor Earbuds 2 Lite and the Huawei Freebuds 4i. Finally, the Honor MagicBook 14 is very loosely based on the recent Huawei MateBook 14S.
When we asked the Honor brand about this, they explained that “. In other words, if recent Honor and Huawei products still look as similar as they did when the former was a subsidiary of the latter, it’s because the devices in question began to be developed before the takeover.
In any case, Honor’s strategy seems to be working, as recent studies show. Honor has never sold as many smartphones as it has in recent months.
Honor has taken Huawei’s place in China
In fact, a study for the first quarter of 2022 by Canalys showed that Honor was the number one brand in China, with 15 million smartphones sold, representing a 20% market share. This represents a year-over-year growth of 205%, as Honor accounted for only 5% of the market in Q1 2021.
The rest of the ranking is interesting: Oppo (18%) and Apple (18%) round out the podium in China. Oppo saw a 34% drop in sales year-on-year, while Apple achieved 17% annual growth. Vivo (16%) and Xiaomi (14%) rounded out the top 5, with these brands experiencing annual declines of 44% and 22% respectively. In other words, Honor and Apple are the only brands in China to see annual growth.
Counterpoint Market Pulse’s ranking for March 2022 gives a similar trend, but Vivo and Oppo remain ahead of Honor. Nevertheless, Honor sees its market share rise from 5.5% to 16.9% and makes a leap there too, from 166.8%.
Honor is looking for funds to accelerate its development
The former Huawei Technologies Co. branch is in talks with investors about a pre-funding round according to published information . It wants to attract foreign funding to improve its image as an international company and to further develop its independence from Huawei. Finally, it is also a way to avoid the risk of sanctions linked to China. However, foreign investors would be surprised by Honor’s valuation of more than 45 billion dollars and remain wary of future American restrictions.
In any case, Honor Device Co. is preparing an IPO. This money will be used for its international development. Which means we’ll be seeing even more Honor products in the coming months.
Huawei posts a drop in revenue
During the same period, Huawei’s revenues continued to decline. The Chinese technology conglomerate is still in the grip of U.S. sanctions. The Chinese group’s first quarterly revenue was 131 billion yuan ($19.81 billion), down 13.9% year-on-year.
To revive its sanctions-hit consumer business, Huawei is focusing on diversifying its offering, we’ve seen the MateBook E, the MateStation X, the new MateBook X Pro or the MatePad Paper, they’ve also recently unveiled a foldable smartphone, the Mate Xs 2. In the smartphone market, Huawei’s global market share has fallen to 3% in 2021 from 15% in 2020, according to data published by Omdia.