Honor, a Chinese technology company, announced its plans to launch a foldable flip phone this year, marking its first foray into the vertical-folding style of smartphones that have become increasingly popular. This move by Honor is in line with their strategy to enter the premium end of the market and compete with giants like Samsung and Apple.
The concept of “foldables” in smartphones refers to devices with displays that can physically bend. Currently, there are two styles of foldables on the market — smartphones that fold horizontally like a book and those that fold vertically like a traditional flip phone but without a visible hinge. Honor’s decision to introduce a flip foldable phone will allow them to tap into a different price point and attract a wider range of consumers.
Foldable phones are considered high-end devices in the smartphone industry. According to Counterpoint Research, sales for premium smartphones priced over $600 continued to grow in 2023, despite an overall decline in the market. The demand for foldable phones is expected to increase by 40% year-on-year, reaching 22 million units in 2024. However, Neil Shah, a partner at Counterpoint Research, mentioned that the demand for flip foldables may be slowing due to pricing challenges, creating an opportunity for new vendors to enter the market.
Honor, which separated from Huawei in 2020, has been focusing on its expansion into international markets. The company aims to surpass its domestic sales in the next three-to-five years and establish itself as a top player globally. At the Mobile World Congress in Barcelona, Honor emphasized the potential of artificial intelligence (AI) in their devices. CEO George Zhao highlighted the importance of AI technology in predicting user behavior and enhancing the overall user experience.
Honor showcased AI-powered features on its Magic 6 Pro handset, including eye-tracking technology and a chatbot built on Meta’s Llama 2 AI model. Looking ahead, Honor plans to leverage AI to revolutionize user interactions and provide personalized experiences on their devices. Additionally, the company revealed its intention to go public, with preparations underway for an initial public offering (IPO) in the near future.
Honor’s decision to launch a flip foldable phone represents a strategic move to capture a broader market segment and challenge industry leaders like Samsung and Apple. With a focus on innovation, international expansion, and AI integration, Honor is positioning itself for growth and success in the competitive smartphone market.