With many media reports, it seems that the sale of the Honor brand is about to become a reality, which will inevitably have a significant impact on the domestic smartphone market. Baiming Technology believes that Xiaomi phones will be under pressure.
The Honor brand was established at the end of 2013, and subsequently achieved 20 million shipments in 2014. It doubled to 40 million in 2015. In the first quarter of 2017, it surpassed Xiaomi and became the number one online mobile phone market share. A rapidly growing Internet brand in the mobile phone market.
The development of the Honor brand is inseparable from Huawei's support, and it has an important relationship with its positioning at the time. Xiaomi launched its mobile phone in 2011. In the third quarter of 2014, Xiaomi launched its mobile phone first in the domestic market and third globally in the third quarter of 2014. Xiaomi's mobile phone mainly relied on the online mobile phone market. With the success of Xiaomi, many domestic mobile phone companies have also learned that it has launched an Internet mobile phone brand, and the unique Honor brand has become the only brand that can compete with Xiaomi in the online mobile phone market, and has also successfully counterattacked Xiaomi.
Since 2016, the competition in the domestic smartphone market has returned from the online market to the offline market, and the Honor brand has also begun to expand the offline market. Relying on the expansion of the offline market, the Honor brand has ensured the stability of its own shipments. It has a large share in the domestic smart phone market. It is precisely because of the contribution of the Honor brand that Huawei mobile phones have been ranked first in the domestic mobile phone market since 2017.
Since the beginning of this year, due to well-known reasons, Huawei’s own chips cannot be produced in chip foundries, and the road to outsourcing chips has also been blocked. Currently, Huawei can only rely on chip inventory to maintain the operation of its mobile phone business, which may be due to insufficient chip inventory. While maintaining the operation of the Huawei and Honor brands, Huawei chose to sell the Honor brand.
If the Honor brand is successfully sold and becomes an independent brand, it may be able to solve the problem of chip procurement, so that the Honor brand will be able to let go and compete with other domestic mobile phone brands in the domestic smartphone market, and Xiaomi will undoubtedly So under pressure.
Among the many mobile phone brands, Honor has proved that it is the only brand that can compete with Xiaomi in the online mobile phone market. It is reported that this time the Honor brand is sold, and related talents will follow the Honor brand. In this way, under the leadership of these talents , Honor brand will continue to compete with Xiaomi in the online mobile phone market.
In recent years, Xiaomi has also recognized the importance of the domestic offline market and is therefore aggressively expanding its offline channels. However, it has declined for two consecutive years since 2018, showing that its expansion of the offline market has not been smooth. The stability of the Honor brand shows that the Honor brand is doing better in the offline market expansion than Xiaomi.
As a result, the Honor brand will put pressure on Xiaomi once again after solving the chip supply. According to data in the third quarter of this year, Xiaomi’s shipments in the domestic market have achieved a year-on-year increase of 19%, and it is also the only brand that has achieved growth among domestic mobile phone brands. Its growth is due to the decline of Huawei. The volume of goods dropped by 18%. After the independence of the Honor brand, it will once again become a direct competitor of Xiaomi. Whether Xiaomi’s shipments can continue to grow will become a problem.
Of course, market changes are affected by many factors. After the independence of the Honor brand, Huawei cannot continue to support it. Whether it can continue to maintain its market position needs to be tested by the market. Today, Xiaomi’s revenue has exceeded 200 billion, and it is also powerful. After expanding offline channels again this year, it remains to be seen whether the Honor brand can finally compete with Xiaomi.
OFweek Veken Signing Author
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