(Image source: Photo.com)
On January 4, Honor CEO Zhao Ming released a video of a conversation with host Dou Wentao, in which he responded to the topic of Honor's listing. When asked if he had been slapped in the face, Zhao Ming said: "Because we want to be an open and global company, we must gradually hand over the company to the public and increase transparency." He also revealed that the profit cash-in ratio of Honor's cash flow is 120% to 130%, and there are tens of billions of cash flow lying on the books.
In the video, Zhao Ming emphasized that Honor has undergone a completely new change and is no longer an extension of Huawei, although it retains Huawei's core values. He said that although Honor has left Huawei's technical support, it still has the ability to outperform its competitors. This dialogue revealed the determination and confidence of Glory to develop independently.
In addition, on December 11, data released by BCI, a market consulting agency, showed that in November, the activation of Xiaomi mobile phones was 5.243 million units (including Redmi), a year-on-year increase of 44.1%, and ranked second with a share of 18.3%, the activation of Honor mobile phones was 4.031 million units, a year-on-year increase of 12.6%, and the market share was 14.04%, and the activation of Huawei mobile phones was 4.014 million units, a year-on-year increase of 75.6%, and the market share was 14.0%, ranking fourth.
From these data, it can be seen that although Honor's market share ranks third, it still maintains stable growth, and Zhao Ming's statement in the dialogue video also shows Honor's confidence and determination in independent development. All these have added a lot of highlights to the future development of Honor.
Looking back at the mainland smartphone market:
——Honor is an important player in the mainland smartphone market
According to the International Data Corporation (IDC) mobile phone quarterly tracking report, China's smartphone market shipped about 67.05 million units in the third quarter of 2023, down 6.3% year-on-year. Honor, OPPO, Apple, vivo and Xiaomi round out the top five. In the third quarter of 2022, the top five brands in China's smartphone market are vivo, Honor, OPPO, Apple and Xiaomi, of which vivo leads with a market share of 19.9%, OPPO ranks second with a share of 18%, and Honor ranks third with a share of 17.2%.
——The layout of multiple product lines may become the future development trend
Judging from the competition in the smartphone industry at this stage, the product layout of major brands in the field of smartphones is seriously homogeneous. In the smartphone market, companies are facing similar competitive pressures, so they are choosing to start with mobile phones and expand into other areas of electronics to improve their competitiveness. In addition, they are also diversifying their marketing channels to expand product awareness.
Senior analyst Varun Mishra noted that the premium segment is growing as smartphone consumers' buying patterns change. He said that consumers are willing to pay more for high-quality equipment because they realize the importance of smartphones. Many consumers see having the latest and greatest flagship stores as a status symbol, especially in emerging markets, where they jump straight into the premium segment rather than buying devices in the mid-price range. In addition, high-end equipment is becoming increasingly affordable due to promotional seasons and financing options.
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