A citizen demonstrated the Honor 50 smartphone in Shanghai, China on June 16, 2021.
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Guangzhou, China – Huawei’s smartphone brand Honor, which was spun off last year, is beginning to regain share in China’s highly competitive mobile phone market.
Counterpoint Research said in a report on Wednesday that Honor had a 15% market share in China in August, making it China’s third-largest smartphone manufacturer-this is the first time it has occupied this position in a year.
The smartphone company lags behind domestic rivals Oppo and Vivo. Compared with July, sales of Honor devices in August increased by 18%, making it one of the fastest-growing brands in China.
In November, Huawei sold its cheap brand Honor A consortium of buyers including the Shenzhen Municipal Government, where its headquarters are located.
Huawei did this to ensure that the glory survived because U.S. sanctions on the Chinese tech giant cut off the supply of key components with Weakened its smartphone business, Including honors at the time. Selling it allows Honor to obtain key components such as semiconductors again.
Tarun Pathak, Director of Research at Counterpoint Research, said in a press release: “After the spin-off from Huawei, Honor was able to restore its relationship with component vendors.” “Since then, use its powerful R&D [research and development] In terms of capabilities, Honor has launched new products, which have quickly recovered in China. “
In January, Honor launched a mid-range phone called V40, Followed by Honor 50 in June. This month, it launched the higher-end Honor 3 series of smartphones, which will be launched in China and other global markets including Europe.
Pathak said: “Honor has also targeted the high-end market through the Magic series, thereby expanding its product portfolio across price ranges.”
“Huawei and Honor’s loyal consumers also have pent-up demand. They insist on their own equipment and did not switch to other brands. The strong relationship with distributors also helps Honor to relaunch products on a large scale. The revival of Honor will further intensify in the second half of 2021. Competition in the Chinese market,” Pathak said.
Honor’s goal is the global market, but it may be more difficult to find success there. Neil Shah, head of research at Counterpoint Research, told CNBC that its global market share reached 3.7% in August, up from 1.5% in February, but this was mainly due to the growth of the Chinese market.
“The growth outside of China may be gradual, because the loyalty in the mid-market is still low, Honor will have to rebuild its distribution network. Then, the shortage of parts and components will intensify, which may hinder Honor’s expansion in 2021. “Warren said Mishra, a senior analyst at Counterpoint Research, said in a press release.
Mishra refers to the shortage of semiconductors This is currently affecting industries from automobiles to consumer electronics.