Honor has now become the third largest smartphone brand in China. The company has managed to beat Xiaomi in the month of August 2021 as its sales grew by 18 percent in its home country.

Honor

As per a Counterpoint Research report, the Chinese smartphone maker saw 18 percent rise month on month, which made it one of the fastest growing brands in the region. Research Director Tarun Pathak added that “After being spun off from Huawei, HONOR was able to restore ties with component players. Since then, leveraging its strong R&D capabilities, HONOR has launched new products and has been on a rapid recovery path in China. The HONOR 50 series has been an instant success in the mid-segment.”

The report added that the company is also targeting the premium segment as well. In other words, the company is expanding its smartphone offering, which should shake up the rankings within the Chinese smartphone market. Senior Analyst Varun Mishra also stated that “Over the last year, there has been a reshuffle in the Chinese market. OPPO, vivo and Xiaomi all have aggressively expanded their presence in China in terms of products, market share and distribution. Apple with its iPhone 13 launch also has a significant opportunity to capture Huawei’s premium segment. Therefore, the competition is likely to intensify further in H2 2021.”

Honor Logo

He further added that ” HONOR will be expanding its portfolio further across price segments and geographies. However, market share growth outside China is likely to be gradual, as loyalty in the mid-segment remains low and HONOR will also have to rebuild its distribution network. Then, there are also intensifying component shortages which can likely hinder company’s expansion in 2021. Besides smartphones, HONOR is also expanding into devices like laptops, tablets, and wearables under its 1+8+N strategy, which aims to drive growth in segments beyond smartphones.”

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