Honor, the former sub-brand of Huawei, has announced its plans to launch an initial public offering (IPO) in the near future, after achieving remarkable growth in China’s smartphone market. The company, which was sold by Huawei in November 2020 due to US sanctions, has managed to overcome the challenges and become the third-largest smartphone brand in China, surpassing Xiaomi, Apple and Huawei.
Honor has been focusing on the Chinese market since its separation from Huawei, launching several new models such as the X50 Series, Magic Vs 2 and Play 50 Plus. The company has also secured partnerships with major chipmakers and suppliers, such as Qualcomm, MediaTek, Samsung and Google, to ensure the smooth operation of its devices.
According to the latest report from Canalys, a market research firm, Honor shipped 11.8 million smartphones in China in the third quarter of 2023, accounting for 18% of the market share. This puts Honor ahead of Xiaomi, which shipped 9.1 million units (14% market share), Apple, which shipped 10.6 million units (16% market share), and Huawei, which shipped 8.9 million units (13% market share). The only brands that surpassed Honor were Oppo and Vivo, which shipped 10.9 million and 10.4 million units respectively, each with 16% market share.
Honor’s growth rate was also impressive, as it increased its shipments by 24% compared to the previous quarter, and by 8% compared to the same period last year. In contrast, the overall smartphone market in China declined by 5% quarter-on-quarter, and by 9% year-on-year, reaching 66.7 million units in Q3 2023.
Honor’s Ambitious Plans for Global Expansion
Honor is not satisfied with its success in China, and has expressed its ambition to expand its presence in the global market as well. The company has recently opened its global headquarters in Shenzhen, China, which covers an area of 350,000 square meters and can accommodate a large number of employees and advanced laboratory equipment. The new headquarters will serve as the base for Honor’s global business development and innovation.
Honor has also announced its plans to launch an IPO in the near future, which could help the company raise funds and enhance its brand recognition. According to some sources, Honor is considering listing on the Hong Kong Stock Exchange, the Shanghai Stock Exchange, or both. The exact timing and valuation of the IPO are still unknown, but some analysts estimate that Honor could be worth around $20 billion.
Honor’s CEO, George Zhao, has stated that the company aims to become one of the top three smartphone brands in the world within three to five years. He also said that Honor will focus on the mid-range and high-end segments, and compete with the likes of Samsung, Apple and Xiaomi. Honor will also invest in research and development, especially in areas such as artificial intelligence, cloud computing, and 5G technology.
Honor’s Challenges and Opportunities
Honor’s journey to become a global smartphone leader is not without challenges. The company still faces fierce competition from other brands, both in China and abroad. Honor will have to differentiate itself from its rivals by offering innovative products and services that can meet the diverse needs and preferences of consumers. Honor will also have to deal with the uncertainties and risks of the global market, such as the supply chain disruptions, the regulatory changes, and the geopolitical tensions.
However, Honor also has some opportunities to seize. The company has a loyal fan base and a strong reputation in China, which could help it gain more market share and influence. Honor also has the advantage of being independent from Huawei, which means it can avoid the US sanctions and access the key technologies and resources that Huawei cannot. Honor also has the potential to tap into the emerging markets, such as India, Southeast Asia, and Africa, where the demand for smartphones is still growing.
Honor is a young and dynamic company that has shown its resilience and determination in the face of adversity. The company has proven its ability to deliver high-quality and affordable smartphones in China, and has set its sights on the global market. Honor’s plans for IPO and global expansion are bold and ambitious, but they could also be rewarding and successful.