Huawei spin-off Honor takes aim at Samsung in foldables; shrugs off U.S. sanction concerns

Honor, a Chinese smartphone maker, displayed its Honor Magic Vs foldable device at the Mobile World Congress in Barcelona. Priced at nearly $1,700, the phone is Honor’s attempt to challenge Samsung in the foldable smartphone market. In an interview, Honor CEO George Zhao outlined the company’s strategy to compete with Apple and Samsung and hinted at the release of a new foldable phone. Zhao also dismissed concerns about potential US sanctions on Honor, which was separated from Huawei. Honor, previously focused on mid-tier smartphones, now aims to tap into the high-end market dominated by Apple and Samsung. Zhao emphasized the importance of making the best products and building trust and relationships with partners to achieve growth. Despite the challenging smartphone market, Honor is targeting high-end devices, which accounted for 18% of the total handset market in 2022, according to Canalys. Honor currently holds a 4.6% worldwide market share, compared to 21.2% for Samsung and 18.3% for Apple. At the Mobile World Congress, Honor showcased its latest flagship devices, including the Magic Vs foldable phone. Zhao believes there is a future for foldable phones, even though their market share is relatively small. While the Magic Vs folds like a book, Zhao confirmed that Honor is seriously considering a smartphone that folds upward like a flip phone. Honor was sold off from Huawei in 2020 to survive US sanctions and regain access to essential chips and software. Zhao is confident that Honor’s business model aligns with industry standards and expects the company to avoid future sanctions.