Is Glory returning to Huawei? An in depth analysis of a business upheaval

Mondo Entertainment Updated on 2024-01-19

Recently, the most exciting news in the technology industry is the "return of glory to Huawei". Since being taken by Huawei in November 2020, Honor, as its sub-brand, has returned to Huawei's embrace for the first time. This is not just a business operation, but also a strategic adjustment. So, is Honor really coming back to Huawei? What are the deep-seated reasons behind this return?

In response to U.S. sanctions, on November 17, 2020, Huawei gave all the business assets of its sub-brand Honor to Shenzhen Zhixin New Information Technology*** Since then, Honor has started the road of independent operation and released a number of new products, such as Honor V40 and Honor 50, which have won wide recognition in the market.

After nearly three years of independent operation, Honor has achieved a certain share in the domestic market. But at the same time, Huawei is also facing unprecedented competitive pressure. According to an IDC report, China's smartphone market shipped about 71.9 million units in Q1 2023, down 11. year-on-year8%。In this context, the re-joining of Huawei and Honor is undoubtedly a powerful means to fight market competition and improve brand influence.

After Honor returns to Huawei, the cooperation between the two in technology research and development will be even closer. It is reported that Huawei has opened its latest Kirin chip ** chain for Honor, which means that future Honor phones will be equipped with Huawei's top chip technology. In addition, the two sides will also carry out in-depth cooperation in 5G, AI, cloud computing and other fields.

The return of Glory has undoubtedly provided Huawei with a new competitive impetus in the domestic and foreign markets. According to a report by Counterpoint, in Q1 2023, Honor's share of the Chinese market has reached 17%, ranking third. Huawei, on the other hand, is in second place, with a market share of 20%. The combination of the two will create a behemoth with a market share of more than 37%, second only to OPPO.

Huawei's global business has been severely affected by the continued sanctions imposed by the United States and its allies. As an independent brand, Honor has not been directly impacted by sanctions in some regions. Therefore, the return of Honor will not only bring more market share to Huawei, but also help it bypass certain sanctions and further expand the global market.

In addition to hardware cooperation, Huawei and Honor also have a huge space for cooperation in the software ecosystem. Huawei's HarmonyOS and Honor's Magic UI can be integrated with each other to create a more complete ecosystem. This not only provides users with a better experience, but also attracts more developers to join, forming a virtuous ecological cycle.

Overall, the "return of glory to Huawei" is a deliberate business upheaval. It is not only a means for Huawei to cope with market competition, but also an important measure for Huawei to further expand the global market and improve its ecosystem. For Honor, returning to Huawei means more technical support and market opportunities. The combination of the two will undoubtedly reshape the landscape of the global smartphone market and bring more choices and better product experiences to consumers.

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