George Zhao, CEO of Chinese smartphone brand Honor, has said that the annual sales volume of the global smartphone market is between 1.3 billion and 1.4 billion units, and that the annual sales volume of the Chinese smartphone market is between 250 million and 300 million units, showing significant potential for expansion, according to a report by China Securities Journal on Thursday.
In 2021, Honor gave priority to the development of the Chinese market, and in 2022, Honor will fully launch overseas market sales. Zhao predicted that there will be no bottleneck period for Honor in the next five years, and that its market share will continue to rise.
George Zhao also said that Honor has 12,000 employees, and that R&D personnel account for more than 50%. The company will continue to carry out technological innovation, and the proportion of R&D investment will be much higher than that of marketing. In the first quarter of this year, Honor’s rate of profit and rate of cash flow both exceeded 100%, showing a strong operating cash flow. Some banks offer various kinds of support, and diversified shareholders and capital sources can allow the company to develop better.
According to CINNO Research, in the first quarter of 2022, the sales volume of China’s smartphone market was about 74.39 million units, down 14.4% year-on-year and up 0.7% quarter-on-quarter. Honor, however, performed strongly, with a sales volume of 12.6 million units in the first quarter, up 176.0% year-on-year and 20.9% quarter-on-quarter, ranking second in China after OPPO.
In addition, the firm’s intelligent manufacturing factory located in Pingshan District, Shenzhen was opened recently. Honor’s Magic4 series smartphone production line and the company’s “Manufacturing & Quality Laboratory” opened to the public for the first time.
The new factory mainly produces high-end mobile phones, including the Honor Magic series and flagship series. According to Song Yiwen, director of the Honor Supply Chain Management Department, the company has many partners, including BYD, Shenzhen Kaifa Technology, and DBG Technology. Honor provides technical support and related equipment through this cooperation arrangement.