Honor unveils US$10 billion investment to drive AI upgrade in smartphones, tablets
The "Alpha" investment plan would support Honor's new strategy to evolve from a smartphone maker into an ecosystem company focused on AI devices, CEO James Li Jian announced on Sunday in Barcelona ahead of the annual MWC mobile trade show.
The initiative would begin with the launch of an AI smartphone designed to change the way users interact with their handsets, eventually expanding into an ecosystem of other devices, including personal computers, tablets and wearable devices, Li said.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Li, who took over from long-time leader George Zhao Ming in January, urged industry partners to share their AI capabilities to create a platform for multiple AI-powered devices.
Former Huawei executive James Li Jian was appoint CEO of Honor earlier this year. Photo: Handout alt=Former Huawei executive James Li Jian was appoint CEO of Honor earlier this year. Photo: Handout>
"This includes the industry becoming truly open, enabling seamless collaboration across different operating systems, and building a value-sharing AI device ecosystem," he said.
The announcement comes as the Shenzhen-based smartphone maker seeks a new direction following a management reshuffle. The new leadership is grappling with fierce competition in the smartphone market, which is expected to intensify as manufacturers race to upgrade their devices with new AI features.
Last week, Honor said it integrated Chinese AI start-up DeepSeek's R1 model into its Yoyo virtual assistant and search engine for smartphones and laptops.
In China, Honor has been collaborating with tech giants including Alibaba Group Holding, Tencent Holdings and ByteDance to provide AI capabilities on its smartphones. Alibaba owns the South China Morning Post.
Internationally, Honor partners with Google to incorporate Gemini AI models into its devices.
Honor is doubling down on AI after integrating DeepSeek's R1 model into its smartphone virtual assistant. Photo: Reuters alt=Honor is doubling down on AI after integrating DeepSeek's R1 model into its smartphone virtual assistant. Photo: Reuters>
Honor, which Huawei Technologies sold to a consortium of buyers in 2020 following US sanctions, has been facing increasing competition in its home market, where its share has declined.
The brand's China smartphone shipments fell 14.9 per cent year on year in the fourth quarter last year, the largest drop among the top five vendors, according to research firm IDC. It ranked fifth with a 13.7 per cent share, down from 16.8 per cent a year earlier and trailing Apple, Vivo, Huawei and Xiaomi.
Despite the challenges, Honor has been gaining ground in some overseas markets. Its shipments in the Middle East surged 67 per cent last year, reaching 3.2 million units, according to research firm Canalys.
The company also surpassed Samsung Electronics to become the leading foldable handset maker in western Europe in the second quarter of last year, according to Counterpoint Research.
Honor announced plans earlier this month to launch more than 30 products in Indonesia in 2025 as part of its ongoing international expansion.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
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Android Authority
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