Since its separation from Huawei in 2020 amid U.S. sanctions, Honor has been working to establish itself as a competitor in the premium smartphone market, dominated by giants like Apple and Samsung. While the company has made strides with innovative products such as foldable phones, its global market share remains modest. According to IDC data, Honor's share outside China grew from 1.7% in 2023 to 2.3% in 2024.
The $10 billion investment will focus on integrating AI into hardware, developing next-generation AI agents (advanced virtual assistants), and creating a unified platform for a wide range of AI devices. An Honor spokesperson explained that the platform will enable interoperability between devices from various partners, offering consumers a seamless and versatile experience. A portion of the funds will also be allocated to prepare for the era of Artificial General Intelligence (AGI), which refers to AI systems surpassing human intelligence.
Collaboration with Google and AI Innovations
Honor showcased a proof-of-concept AI agent at the event, demonstrating its ability to perform tasks such as booking a restaurant based on specific user preferences. The company is collaborating with Google and Qualcomm to develop this technology, though no release timeline was provided. Additionally, Honor is leveraging Google’s Gemini AI system to power AI features on its latest devices.
In a significant move, Honor pledged to provide seven years of Android operating system and security updates for its flagship Magic series smartphones. This commitment places Honor alongside Google’s Pixel and Samsung’s S series as one of the few brands offering such extended support. While Android is Google’s operating system, the seven-year update pledge underscores Honor’s dedication to the platform and strengthens its ties with the tech giant.
A Strategic Partnership
Analysts view Honor’s closer collaboration with Google as a major milestone. Ben Wood, Chief Analyst at CCS Insight, noted, “Honor’s deeper partnership with Google is very significant. While Google has historically kept Chinese smartphone makers at arm’s length regarding advanced Gemini AI features, this move positions Honor on par with Samsung Galaxy and Google’s Pixel products—a notable achievement.”
This partnership not only enhances Honor’s technological capabilities but also signals its ambition to compete more aggressively in the global market, particularly in the high-end segment where AI-driven innovation is becoming increasingly critical.