Honor is set to introduce a foldable flip phone this year, as disclosed by the company’s CEO in a conversation with CNBC. This move marks the Chinese tech giant’s inaugural venture into the vertical-folding style of smartphones, a trend popularized by industry leaders like Samsung and Motorola.
The term “foldable” denotes smartphones featuring flexible displays. Presently, two styles dominate the market: smartphones folding akin to a book and those folding vertically reminiscent of traditional flip phones, albeit without a visible hinge.
The decision to launch a flip foldable aligns with Honor’s strategic push into the premium market segment, where it aims to compete with established players such as Samsung and Apple.
In an exclusive interview with CNBC at the Mobile World Congress in Barcelona, George Zhao, CEO of Honor, revealed, “This year we are preparing for the flip phone launch — now that we are internally in the final stage.” He expressed optimism about the prospects of foldable technology, stating, “We are very positive about foldables for the future.”
While Honor already offers several foldable phones, including the Honor Magic V2 introduced last year, all of its current models feature the book-style folding mechanism.
The expansion into flip foldables will expose Honor to a different price bracket. Flip-style phones, exemplified by Samsung’s Galaxy Z Flip 5, often come with a more affordable price tag compared to their horizontally folding counterparts.
In the realm of smartphones, foldables are perceived as high-end devices. Counterpoint Research suggests that sales of premium smartphones, priced over $600, likely experienced growth in 2023 amidst an overall market decline, motivating Honor’s focus on the high-end segment.
Projections indicate a 40% year-on-year increase in sales of foldable phones to 22 million units in 2024, according to Counterpoint Research. However, Neil Shah, a partner at Counterpoint Research, noted a potential slowdown in demand for flip foldables due to challenges in meeting expectations for aggressive pricing.
Shah anticipates this scenario could create opportunities for new entrants to explore the flip segment and test the market.
Established as a separate entity from Huawei in 2020 due to U.S. sanctions, Honor has endeavored to thrive as an independent brand. Initially gaining traction in China, the company now aims to expand its presence in international markets, where it currently does not rank among the top 5 players globally.
Zhao expressed his aspiration for overseas sales volumes to surpass those in China within the next three to five years.
Honor’s Embrace of AI
Similar to many other device manufacturers showcasing their innovations at MWC, Honor highlighted the vast potential of artificial intelligence (AI).
According to Zhao, the true value of AI emerges when a device can anticipate the user’s next actions. For instance, upon receiving a message inviting you to dinner, the device could predict whether you intend to view the restaurant’s location on a mapping app or respond to the message.
“In the future, Honor’s strategy revolves around AI’s ability to reconstruct user interaction. It will be intent-based, focusing on understanding the user’s requirements as they interact with their device,” Zhao elaborated.
During MWC, Honor unveiled an AI-powered feature on its Magic 6 Pro handset capable of tracking the user’s eye movements. Additionally, the company showcased a chatbot demonstration leveraging Meta’s Llama 2 AI model.
In the previous year, Honor announced its intention to pursue an initial public offering (IPO). Zhao revealed that preparations for the IPO are underway, although the timing and listing destination has yet to be finalized.
