In its own product line, Honor not only has the low-end X series and Note series, but also the high-end Magic series. It not only competes with Xiaomi, but also competes with Huawei P and Mate series.
In terms of channels, as early as 2015, Honor began to expand offline channels due to the ceiling of online channels. Now, it is not satisfied to be an Internet brand Honor. After five years of quiet penetration, it overtook online channels in the first half of this year. . And offline stores and Huawei are independent.
In terms of mobile phone sales, Honor also accounts for a considerable share of Huawei’s mobile phone sales. Statistics from Canalys show that in the Chinese market, in the second quarter of this year, Huawei surpassed Samsung and Apple in shipments of 55.8 million units, of which Honor accounted for 26% and shipped 14.6 million units; the third quarter of this year Glory also accounts for 26% of the 34.2 million smartphones shipped by Huawei.
During these seven years, Honor has not only gained its own user base in the fierce competition with Xiaomi, and fulfilled its mission as a sub-brand of Huawei, but also strengthened itself and laid the foundation for the next independence. The question is, what will the relationship between Honor and Xiaomi become without the support of Huawei?
After the joint acquisition statement was issued, Huawei also issued a statement on its official website to formally respond to the sale of Honor. Huawei said that at a difficult time when industrial technology elements are unsustainable and consumer businesses are under tremendous pressure, in order to allow the continuation of Honor channels and suppliers, Huawei Investment Holding Co., Ltd. has decided to sell Honor business assets as a whole. For this acquisition, Huawei defines it as a self-help behavior initiated by the glory-related industry chain.
According to the analysis of relevant sources, Huawei is experiencing a chip supply cutoff due to the ban, and the divestiture of Honor can alleviate the dilemma of no “core” available for its smartphone business in the next two years. For Honor, the deeply imprinted Huawei sub-brand label undoubtedly limits its ceiling. As a result, Honor is also trying to de-Huawei in recent years. Independence is a good thing.
However, as a sub-brand that has long been attached to Huawei, the Honor mobile phone itself relies heavily on Huawei’s technology. Some users of Glory reported that the login of the Glory mobile phone is the Huawei account, the built-in APP is Huawei Mall, Huawei Video, the pollen club is used, the user agreement is Huawei Terminal Co., Ltd., and the phone box says Huawei Technologies Co., Ltd. In terms of R&D and supply chain, Honor has always shared with Huawei. After independence, without Huawei’s follow-up technical support, Honor may face technical interruption and the hidden worries that it cannot be updated.
Then the question arises. After becoming a new brand-independent, Honor has lost the support of Huawei in terms of brand, R&D, and channels. Can the lack of platform capabilities be supplemented in time? How to add? Will consumers still recognize the Honor brand? Will it enter the high-end without relying on Huawei’s new glory? Can you quickly make up for shortcomings to maintain your position in the Chinese market? After “flying solo”, Honor faced only more problems.
In addition, after leaving Huawei for independence, whether the relationship between Honor and its old enemy Xiaomi will change is also the focus of the industry. Some believe that although Honor has become an independent brand, it includes Wan Biao, COO of Huawei Consumer Business, Zhao Ming, President of Honor, Fang Fei, Vice President of Huawei Product Line, Yang Jian, Director of Retail Management Department of Huawei Consumer Business, etc. Many Huawei managements, including Huawei, remain unchanged. Therefore, in the future, Honor and Xiaomi will maintain the fierce competition in the past. After getting rid of Huawei’s constraints, New Honor will rely on Qualcomm, MediaTek and other companies’ 5G chip supply. Sitting on the core resource of distributors will become a more difficult opponent than “Huawei Glory”.
article links：Can the eagle leaving the nest find its own glory?
Reprint indicated source：Spark Global Limited information