According to Counterpoint Research, in August 2021, Honor managed to surpass Xiaomi in terms of smartphone sales in China and become the third largest brand in that market. In just one month, Honor’s smartphone sales in China grew 18%, one of the best growth rates ever.
Commenting on Honor’s success in the world’s largest smartphone market, Counterpoint Research Director of Research Tarun Pathak said: “After separating from Huawei, Honor has been able to re-establish links with component suppliers. From now on, using its strong R&D capabilities, the company has released new products and is on track for rapid recovery in China. The Honor 50 series was an instant success in the mid-range segment. Honor is also targeting the premium segment with the Magic Series, expanding its portfolio in price ranges. There is also pent-up demand from loyal Huawei and Honor consumers who have kept their devices and have not switched to other brands. Strong relationships with distributors have also helped in the widespread promotion of Honor. The resurgence of Honor will further intensify competition in the Chinese market in the second half of 2021. ”
Describing the competitive landscape, analysts note that Oppo, vivo and Xiaomi are actively expanding their presence in China, expanding the range, while Apple with the release of the iPhone 13 series has a good opportunity to get hold of the premium segment previously owned by Huawei. This suggests that competition is intensifying, in which the expansion of Honor may be hindered by an aggravating shortage of components. It remains to add that Honor is betting not only on smartphones, but also on other products, including laptops, tablets and wearables.