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    Home » Electronics and hardware » China’s Honor takes direct aim at Apple

    China’s Honor takes direct aim at Apple

    The absence of a foldable phone in Apple’s portfolio is creating an opening for rivals, according to Honor’s CEO.
    By Agency Staff12 July 2023
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    The absence of a foldable phone in Apple’s portfolio is creating an opening for rivals to overtake the iPhone maker, according to Honor’s CEO.

    The Shenzhen-based firm on Wednesday rolled out its latest foldable device, the Magic V2, which measures in at less than 10mm thick. The phone has a regular glass display comparable to the iPhone 14 Pro on its exterior and a 7.92-inch foldable OLED screen on the inside.

    “The product has only one targeted competitor — Apple’s topmost flagship phones,” Honor CEO George Zhao said in an interview ahead of the unveiling. “As strong as Apple is, it can’t fulfil all demands from consumers.”

    The product has only one targeted competitor — Apple’s topmost flagship phones

    Honor, once a sub-brand of Huawei Technologies, spun off from the telecommunications equipment provider in late 2020 after US sanctions choked off Huawei’s access to advanced chips. As an independent entity, Honor is not subject to the same curbs, and the Magic V2 is powered by Qualcomm’s latest Snapdragon 5G chipset.

    The world’s major Android phone brands, from Samsung Electronics to Xiaomi, have all introduced a variety of foldable models, leaving Apple the only top vendor without such an offering.

    Foldables took only a fraction of global smartphone shipments last year, but the potential is growing. Their larger screens are a selling point to help Android manufacturers ask higher prices and increase their typically paper-thin margins. More than 21 million foldable phones will be shipped this year and the category is on track to more than double by 2027, research firm IDC estimated.

    ‘New arena’

    “Similar to the rise of electric cars, foldables have created a new arena in the smartphone industry,” Zhao said. Chinese smartphone consumers have long prioritised higher specifications and larger displays when making their purchase decision. Apple’s iPhone is one of the top-selling devices in the country, though the market is competitive enough for the leader in sales to change regularly.

    Honor was the only major brand that grew shipments in Covid-stricken China last year, defying a double-digit slump that delivered a decade low for the market. Smartphone makers are facing an even fiercer fight in 2023 as the cooling economy suppresses demand.

    Read: Apple is now the only major phone brand without a foldable – does it matter?

    The company is mulling plans to sell the Magic V2 in overseas markets as well as in China, and Europe will be a key part of its expansion this year, said Zhao.  — (c) 2023 Bloomberg LP

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