While we were at IFA in Berlin last week, we had a chance to speak with Honor Europe CEO Tony Ran and Honor Western Europe CMO Clement Wong, who shared more about the company’s background and future plans.
Tony Ran, CEO of Honor Europe
The discussion included several interesting topics such as the way forward for Honor after its independence from Huawei, its software plans and upcoming devices.
Can you explain your similarities to Huawei in terms of device design, specs and software? How do you aim to change as you are now an independent brand?
Tony Ran (TR): We have already started to change, to differentiate ourselves from Huawei and other suppliers. With the upcoming launch of Magic OS 7 in the fourth quarter of 2022, this is a big step up from the previous Magic UI. This is a big leap not only from an interface point of view, but also from deep roots. Starting with Magic OS 7, users will see the difference compared to Huawei devices.
Clement Wong (CW): We have been independent from Huawei for a year and a half (about 18 months) and it is understandable that we carry a bit of a legacy from before. Internally, we care about our image and want to stand out and be our brand. We are trying to differentiate our products from other suppliers step by step, but this takes time. It will take time to differentiate ourselves from a hardware perspective due to the supply chain logistics of components and the R&D investment required to build a new product.
From a software perspective, we’re looking to speed up the process and you’ll definitely notice the difference with the upcoming release of Magic OS 7 later this year. We also have more products on the way, including a flagship phone that is totally different in terms of look and feel than other vendors. We have full confidence that our efforts will help Honor stand out from other Android manufacturers.
What was the most challenging aspect of moving from Huawei to being an independent company?
TR: The transition to being an independent company is a sophisticated process and required careful planning and a lot of effort. Huawei is a great company and once we parted we had to take all the responsibilities on our own. We had to take responsibility from a corporate department and a legal entity. Previously, Huawei’s established platform was there for us and we didn’t have to think about it much.
Now, we have the task of covering all aspects by ourselves. This experience gave us space to think about the significance of doing business in different regions. We are also tasked with meeting the expectations of our consumers and partners in terms of products, supply and user experience.
We are a product-oriented company and our continuous investments in research and development are a great goal for us and a key factor for our future. When we separated from Huawei in 2021, we had around 8,000 Honor employees, while today we have around 13,000 employees and around 8,000 of them are involved in research and development. We believe that the new talent we have acquired will be the root of our future success.
In terms of brand identity, we have restructured ourselves into an omnichannel brand. Under Huawei, Honor was a young internet-only brand, but we’re no longer limited to online sales only and we also have our own premium products and will continue to focus on the mid-to-high-end device segment. In 18 months we have already launched several flagship products in the Magic range.
Can you talk about the dependence on manufacturing facilities and component suppliers that you share with Huawei?
CW: First of all, if we can leverage Huawei’s resources, our job will be a little easier. Starting a completely new supply chain from scratch is a very difficult undertaking. Phones like Magic4 and Honor 70 are manufactured in-house in our smart manufacturing industrial park in Shenzhen.
Most phones nowadays look similar to other brands as well and if you find similarities between Honor and Huawei phones it is not because of the legacy (Huawei), but because of the lack of innovation in the smartphone market and we at Honor we aim to change that and see a lot of potential with foldable phones.
One of our goals is to make a foldable phone that can serve as a primary phone for consumers, as most of the foldable phones available in the market now are used as secondary phones. Stay tuned for our next Magic V foldable phone.
TR: The whole industry is waiting for innovation right now and we are pushing in that direction. The three pillars of innovation for Honor are 5G, smartphone display technology and cameras. One thing we still share with Huawei is the experience and it’s something you can’t immediately disconnect. Many people have asked if we still have any secret information that we still share with Huawei and the answer is no.
How important are carrier partnerships for Honor in Europe and the UK? Is this the main channel for selling your phones?
TR: Our relationship with the carriers is essential. Right now we have important connections with all major carriers in Europe and the UK. It’s a step-by-step story as some carriers are a bit conservative in choosing a new partner like Honor.
Trust and reliability are the two big factors that help smartphone carriers and companies reach deals and we are proud to say that Honor is a trusted brand among leading European and UK carriers and we are continuing to expand our network partners. The relationships established with the carriers are a fundamental pillar for our future business growth.
From another point of view, we are also closely watching market trends and online sales are an inevitable part of our business. In Europe, more than half of all smartphone sales sold during the COVID period were generated online and this momentum continues today. In some countries, the ratio of online to offline sales ranges from 35% to 65%, and in some countries from 40% to 60%. Our goal is to remain an omnichannel brand to make sure consumers have multiple ways to experience Honor products.
Are there any plans to build a network of Honor retail stores across Europe?
TR: We will continue to invest in our channel partners and brand infrastructure. Our collaboration with partner retailers is still the primary way to reach consumers. At the same time, we understand that partnerships may not be enough for consumers to experience everything Honor has to offer as a brand. It is possible that in a few years we will open iconic stores across Europe to provide consumers with an integrated brand experience.
How has Honor dealt with the supply chain problems that have occurred over the past year? What strategies did you use? How does it affect your product portfolio?
TR: We are embracing uncertainties. From a supply perspective, the entire industry has suffered from a shortage in terms of all the key parts that make up smartphones over the past year. Honor has a healthy supply chain with long lasting good relationships with suppliers. We embrace the whole industry and have established cooperation with all major suppliers. We are also trying to create value not only for the consumer but also for our partners in the supply chain.
In what hardware perspectives are you looking to innovate with your future phones?
CW: The two big focal points for us are the cameras and the craftsmanship. We are always aiming to bring better cameras to our phones and improve the craftsmanship. We also have a close partnership with Qualcomm and use their flagship chipsets in our premium phones. Another key part for us is the software, and as we’ve already mentioned, Magic OS 7 will make a big difference in terms of user experience. It is difficult to separate the hardware from the software as they integrate together.
Are you planning to introduce a flagship phone with a more compact design, for example with a 6-inch screen?
CW: The market is driven by devices with large screens. Advances in structural engineering over the past few years have allowed us to fit larger screens into a smaller device footprint and we will continue to serve our customers and their needs. Consumers love having a big screen on their phones and that probably won’t change for years to come.
Can you give us a timeline for the launch of your next foldable phone?
TR: Our next foldable phone will be launched first in China and will be followed by a global launch later. We cannot reveal the exact time frame for now, but you will hear more in due course.
Why did you omit wireless charging and optical image stabilization (OIS) on the Honor 70?
CW: Wireless charging still has a speed problem. Our 66W wired charging is convenient and fast, while wireless charging is certainly convenient but it’s nowhere near that fast. The implementation of the OIS depends on the structure and size of the phone.
We use a large Sony IMX 800 sensor in the Honor 70 and physical space was a constraint. We are very confident in the performance of the IMX 800 sensors and are also satisfied with the results of the electronic image stabilization (EIS).
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