Seventh Largest Smartphone Brand, Honor, Receives Investment From China Mobile
Honour, a Chinese smartphone maker, has secured an undisclosed investment from China Mobile’s parent firm.
The seventh largest smartphone brand recently sent an email to Bloomberg.
The company outlined China Mobile’s most recent investment and how the partnership will work in the future.
In 2020, the Shenzhen-based Honour separated from Huawei Technologies Co. to avoid US trade sanctions that would have hindered the mobile business of the larger company.
The company, which is mostly supported by local government agencies, is preparing for an IPO and has display manufacturer BOE Technology Group Co. as an investor.
“Both parties will give full play to their respective advantages and jointly provide consumers with a better and more innovative experience,” an Honor spokesperson said on Friday.
Newsng gathered that Honour shipped 15.5 million units in 2Q24, less than in 1Q24. Honour has grown year over year for four quarters running, with a 9.9 per cent increase from 2Q23’s 14.1 million shipments.
According to the most recent Canalys data, Honour shipped 10.6 million handsets in Q1 2024, capturing 16 per cent of the Chinese smartphone market.
Just as the market is starting to bounce back from a post-Covid slump, China Mobile now has access to a smartphone manufacturer thanks to this new investment.
The demand for digital services is slowing down, subscriber growth is modest, and average revenue per mobile user for Chinese carriers is declining, according to Bloomberg Intelligence analysts Marvin Lo and Chris Muckensturm.
According to Reuters, the Shenzhen government has given Honour support in the form of tax cuts and financing for research and development.
A statement from Honour indicated that China Mobile’s investment seeks to take advantage of synergistic advantages in innovation across the personal and home device industries.
The biggest telecom service provider in the world, China Mobile is the biggest 5G operator.
We earlier reported that Starting in September, Microsoft has announced that its employees in China will only be permitted to use their iPhones for work-related purposes.
