Shine on a market in the fog while attacking all over the place. Chinese manufacturer Honor unveiled two high-end smartphones – the Magic 5 Pro and the folding Magic Vs – on the first day of Mobile World Congress in Barcelona (Spain). A dual-launch commercial strategy dictated by urgency and economic conditions.
The annual high mass of telecoms and new technologies is held in a difficult context for the telephone industry and all brands are looking for a parade. According to the specialized agency IDC, global sales fell 11.3% last year, to 1.21 billion units, the lowest number since 2013. And the outlook remains gloomy for 2023, with a new decline of 4% expected for phones, tablets and computers, according to Gartner.
“There is a real drop to compensate by boosting demand with innovations that really meet consumer needs such as autonomy or photos,” said Stephen Zhou Qi, CEO of Honor France. Heir to the Huawei empire deprived of American technologies, the Shenzhen company has risen to second place in sales in China but is still looking for its marks in Europe and France.
Nibble market share
Its leaders have acted last year a move upmarket to seduce a new audience and retain it. The price of the Magic 5 Pro, 1,199 euros at its launch in the second quarter, or that of the Magic Vs, the folding model (1,599 euros), no longer seems to be an obstacle for manufacturers. In France, one in five smartphones sold costs more than 1,000 euros to purchase, which is considered a sustainable investment.
“Consumers are changing smartphones less and less, every 42 months on average, they are looking for a better quality model whose technical specificities guarantee that performance does not deteriorate and they pay the price”, explains James Pinto, consultant Telecoms of GfK France. “All the brands are moving into premium because the segment above 1,000 euros is growing in volume and value, while the global market has been declining for five years,” points out the expert.
To compete with Apple’s iPhone 14 or Samsung’s S23 and Fold, Honor balances innovations developed internally. Chinese engineers, often defectors from Huawei, have developed a screen that reduces eye strain or a complete camera with a 54 Megapixel (MP) main sensor, a 50 MP ultra-wide and macro main camera and a zoom 8 MP 3X optical. Technical arguments intended to trigger the purchase as well as establish a reputation as a technological leader in the minds of the consumer.
The Honor Magic 5 Pro will be available in France in black and green versions starting at 1,199 euros in a 12 GB RAM and 512 GB storage configuration. With the same configuration, the Honor Magic Vs will be available during the first half of the year from 1,599 euros.