Honor CEO Announces Launch of Foldable Flip Phone at Mobile World Congress

Honor, the Chinese technology firm, is set to launch its first foldable flip phone later this year, as confirmed by the company's CEO George Zhao. This move marks the company's entry into the vertical-folding style of smartphones which has been popularized by brands like Samsung and Motorola.

Challenging Premium Market

The decision to launch a flip foldable aligns with Honor's strategic push into the premium segment of the market, where it aims to challenge established companies such as Samsung and Apple. Zhao mentioned in an exclusive interview with CNBC at the Mobile World Congress in Barcelona that the company is in the final stage of preparation for the flip phone launch.

Expansion into New Price Point

While Honor already has a range of foldable phones on the market, the upcoming flip foldable will expose the company to a different price point. This is significant as the flip style of phones, like Samsung's Galaxy Z Flip 5, are often priced more affordably compared to the horizontal-style folding devices.

Market Outlook for Foldable Phones

According to Counterpoint Research, sales of premium smartphones priced over $600 likely grew in 2023, despite a decline in the overall market. The research also indicates that sales of foldable phones are projected to increase by 40% year-on-year to 22 million units in 2024.

However, Neil Shah, a partner at Counterpoint Research, suggested that demand for the flip foldable may be slowing due to challenges in meeting consumer expectations for aggressive pricing in this form factor. This development could potentially create opportunities for new vendors to enter and expand in the flip segment.

Honor's Market Aspirations

Established as a spin-off from Huawei in 2020, Honor has been navigating the global market as an independent brand, aiming to extend its success beyond China into international markets. Zhao expressed his hopes that within the next three-to-five years, sales volumes of Honor's products in overseas markets will surpass those in China, consolidating the brand's position on a global scale.

Focus on AI Integration

Like many other device manufacturers at the Mobile World Congress, Honor emphasized the potential of artificial intelligence (AI) in its future products. Zhao stressed the value of AI technology that can anticipate users' needs and interactions. He provided an example of how a device could predict the user's intentions, such as opening the name of a restaurant in a mapping app or replying to a message based on the context of a received notification.

Moreover, at the event, Honor showcased an AI-powered feature on its Magic 6 Pro handset that can track the user's eyes, demonstrating the company's commitment to integrating advanced AI capabilities into its devices. Additionally, Honor presented a chatbot demo based on Meta's Llama 2 AI model, highlighting its efforts to leverage AI technology in enhancing user experience.

Initial Public Offering Plans

Last year, Honor announced its intention to go public. While preparations for the initial public offering are underway, Zhao clarified that there is no final decision on the timing or destination for the listing.