The CEO anticipates that half of our sales will originate from international markets within the next three years.
Honor Enters Global Market with AI-Focused Smartphones
In Barcelona, Spain, Honor from China unveiled what it claims to be the first-of-its-kind “intent-based” interface. This innovative feature aims to predict users’ needs on their top-tier smartphones and PCs, signaling a strategic move to capitalize on the AI surge and expand its presence in international markets.
The company asserts that AI-powered intent-based recognition technology can effectively analyze messages and photos, deciphering users’ intentions through their daily on-device usage behaviors.
An Honor spokesperson highlighted the time-saving potential of their latest technology, stating, “With our new AI portal, our smartphones and PCs can streamline tasks like analyzing booking confirmations to swiftly launch the Google Map app, eliminating at least eight manual steps.” Additionally, users can simply drag images from Instagram to initiate online shopping searches for similar items, while calendar entries are seamlessly generated from emails or other text inputs.
During a luncheon in Barcelona on Sunday preceding the Mobile World Congress, Honors’ CEO George Zhao announced that their new AI portal now accommodates over 100 of the most widely used global apps.
Honor plans to introduce semantic AI technology, enabling machines to comprehend text and search queries, resulting in enhanced accuracy and streamlined information retrieval. Additionally, the company will extend its eye-tracking technology, currently accessible in China, to global markets. This advancement will facilitate hands-free answering of phone calls and web browsing for users worldwide.
Zhao stated that Honor anticipates that international shipments will comprise over half of its sales within the next three years.
Zhao informed Nikkei Asia that the growth rate in overseas markets surpasses that of domestic ones. He predicted that within three years, more than half of Honor’s sales would originate from the global market.
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He informed reporters that his company is experiencing robust expansion in Europe and Latin America, particularly in countries like Mexico and Peru.
The company, once part of Huawei, is now looking to strengthen its partnerships with leading tech firms. Their latest flagship, the Magic 6 Pro, is equipped with Qualcomm’s cutting-edge Snapdragon 8 Gen 3 mobile processors, the very same chips found in Samsung’s recent releases. Additionally, they’re showcasing prototypes at MWC that utilize Meta’s advanced language model, Llama 2, which promises instantaneous question-and-answer capabilities for upcoming devices.
Competition in the smartphone arena is intensifying as manufacturers vie to integrate AI capabilities into their devices, aiming to ignite the next phase of expansion. Samsung made waves in January with the launch of its Galaxy S24 series, boasting captivating generative AI functionalities such as live phone call translation and advanced note-taking and summarization features.
In the face of a downturn in China and the resurgence of its previous parent company, Huawei, Honor is aiming for robust expansion in its international ventures. Originally the budget smartphone arm of Huawei, Honor separated in late 2020. Overseas revenue surged to almost a quarter of its total in 2023, a significant leap from just under 10% in 2022, as reported by Canalys.
Runar Bjorhovde, an analyst at Canalys, emphasized that expanding into international markets is a crucial milestone for For Honor as it progresses toward an IPO.
Bjorhovde noted that Honor has been making strides in this area, particularly in Europe and the Middle East, where it secured the position of the fifth-largest vendor by the final quarter of 2023.
According to IDC, there’s a notable surge anticipated in next-generation AI smartphones, with an estimated 170 million units set to ship in 2024. This projection indicates nearly three times the volume compared to the estimated 51 million units in 2023, potentially constituting a 15% share of the overall smartphone market.
Bryan Ma, an analyst at IDC, shared with Nikkei Asia that the smartphone sector is pinning its hopes on AI to reignite consumer interest, particularly after experiencing a 3.4% decline last year. However, Ma highlighted the ongoing challenges posed by the immaturity of AI applications and use cases. He suggested that in the short term, many purchases of AI-enabled smartphones are likely driven more by the appeal of flagship models rather than a specific demand for AI features among consumers.
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