Honor GT Series Goes Independent: Honor Returns to the Online Market, Aiming for a New Landscape

Honor GT Series Goes Independent: Honor Returns to the Online Market, Aiming for a New LandscapeOn October 30, 2023, during the launch event for the Honor Magic7 series flagship smartphones, Honor CEO Zhao Ming announced that the Honor GT series would become an independent product line. Positioned as a "new performance technology series that understands young people better," the first Honor GT device is set to be released later this year

Honor GT Series Goes Independent: Honor Returns to the Online Market, Aiming for a New Landscape

On October 30, 2023, during the launch event for the Honor Magic7 series flagship smartphones, Honor CEO Zhao Ming announced that the Honor GT series would become an independent product line. Positioned as a "new performance technology series that understands young people better," the first Honor GT device is set to be released later this year.

The Honor GT series is designed to be a "fast technology" trend-setting performance product for the online market. It seamlessly blends "cutting-edge trends" with "powerful performance," aiming to rapidly popularize Honor's flagship technology. As a new independent product line focused on online channels, the Honor GT series will continue the legacy of Honor's pre-independence internet phone attributes and positioning.

The independence of the Honor GT series marks a significant milestone for Honor, signifying its maturity after four years of independence. It demonstrates the company's solidified organizational structure, operational systems, technological foundation, and product layout. After years of preparation, the Honor GT series is poised to carry the responsibility of Honor's return to the online market and reshape the competitive landscape.

Honor GT: A Return to Roots, Reshaping the Online Market

Born within Huawei, Honor initially focused on the internet phone market as a sub-brand. As early as 2014, Honor garnered significant success with its exceptional market performance, exceeding 20 million units sold and launching popular products like the Honor 3C and Honor 3X. In 2017, Honor claimed the crown of the top internet phone brand. That year, Honor achieved impressive sales figures of 49.68 million units and 71.6 billion yuan in revenue, eclipsing competitors. Notably, in November, Honor ranked second in China's overall online and offline smartphone sales, trailing only Apple, and securing the top spot in Android smartphone sales.

In late 2020, Honor officially became independent, facing a challenging period of rebuilding. Over the subsequent four years, Honor navigated through this period with a strategic "smile curve," not only overcoming its initial difficulties but also forging its own path. Today, Honor stands strong, holding a dominant position in the high-end foldable phone market while simultaneously cultivating a robust offline market presence backed by strong research and development capabilities and a deep technological foundation.

Market data from IDC reveals that in Q1 2024, Honor achieved a 17.1% market share in China's smartphone market, ranking first in terms of shipment volume. In the foldable phone market, Honor holds the third position globally and in Western Europe, and second in China. In the horizontally folding foldable phone category, Honor ranks second globally, in Western Europe, and in China (TechInsights). Additionally, internal sales data from Honor indicates a 155% year-over-year growth in European sales during Q1, while foldable phone sales saw an impressive 884% year-over-year increase within the first four months of their launch. In global markets, Honor has witnessed significant sales growth, particularly in key European markets, with a 156% increase in sales in Q1 2024 and a Top 5 market share. In Latin America, Honor's smartphone sales have doubled year-over-year, with Q1 2024 showcasing a growth rate exceeding 100%, propelling Honor into the Top 5 in the region, representing a 293% year-over-year growth (Canalys).

In terms of research and development capabilities, Honor has consistently allocated over 10% of its total revenue to research and development every year for the past three years, reaching 11.5% in 2023. Concurrently, Honor has been collaborating with upstream and downstream partners in areas such as screens, battery life, and foldable displays, fostering the development of its own core innovative capabilities. A range of groundbreaking technologies, including AI, Hongyan communication, DLG Pro eye protection screens, Diamond Rhino glass, and DSLR-level Super Dynamic Eagle Eye camera, have collectively contributed to Honor's ascent into the premium market.

Honor's return to the online market is a strategic necessity. The establishment of the Honor GT series is a natural progression, signifying Honor's maturity after four years of independence, marked by a solid organizational structure, operational systems, technological foundation, and product layout. Today's Honor parallels the past Huawei, and the current Honor GT series mirrors the legacy of the previous Honor. This implies that the Honor GT series will take on the mantle of internet phone positioning that Honor held before its independence. After a four-year hiatus, the former internet phone king returns to the online arena, now with the identity of the Honor GT series.

Rapid Deployment of Flagship Technologies, Driving Innovation in Online Products

The independence of the Honor GT series is not just a new milestone in Honor's brand strategy but also a significant step in its comprehensive return to the internet market. This move follows years of deep-rooted omnichannel operations, a solidified foothold in the high-end foldable phone market, and a robust offline channel presence. Tailored for users who deeply appreciate advanced technology, the Honor GT series, launched in 2023, has gained widespread recognition from both the industry and consumers for its powerful configuration and exceptional performance.

With the Honor GT series charting its independent course, Honor's formidable technological accumulation will be applied more rapidly and efficiently across a wider range of product lines, making technology accessible to a broader audience. The spillover effect of Honor's substantial technology reserve not only offers consumers greater choice but also significantly enhances competitiveness within the online market.

For the new Honor GT series, the long-standing advancements in AI intelligence, Qinghai Lake battery technology, communication capabilities, imaging processing, screen eye protection, and chip technology innovation will be fully utilized, driving a new wave of performance enhancements. More consumers will benefit from the convenience brought about by these cutting-edge technological achievements, while simultaneously propelling technological progress and development within the entire industry.

According to recent data, global smartphone sales in Q3 2024 experienced a year-over-year increase for the first time since Q3 2018, reaffirming the gradual recovery of consumer electronics market demand. In the online market, major brands are accelerating product iterations. For instance, iPhone, through consecutive price reductions, is actively participating in major online shopping events like Double 11, making market competition even fiercer.

Faced with this landscape marked by both opportunities and challenges, Honor's strategic announcement of the GT series' independence on the eve of Double 11 demonstrates its preparedness and strong position in the market. This move signifies a significant counteroffensive in the online market for Honor. This "new performance technology series that understands young people better" has the potential to reshape the online market landscape.

The return of the Honor GT series will inject new energy into the online market while offering consumers a more cost-effective product experience. Leveraging its robust technological strength and brand influence, Honor is set to once again lead online market trends, ushering in a new competitive landscape.

Conclusion

The independence of the Honor GT series represents an upgrade in Honor's brand strategy and a significant move for its return to the online market. Embracing Honor's brand essence and technological strengths, the Honor GT series will cater to consumers with its "fast technology" philosophy, delivering a new performance technology experience that understands young people better. This re-entry will infuse the online market with new dynamism. The return of the Honor GT series heralds the dawn of a new competitive landscape, and we eagerly await its impact.