Chinese phonemaker Honor wants to be the number one smartphone brand in South Africa by 2028.
The company is banking on artificial intelligence and other advanced technologies embedded in its phones to claim the top spot from South Korean tech giant Samsung. It is also pumping millions of rands into marketing its products through partnerships and sponsorships.
Honor, which re-entered South Africa about four years ago, said it has the second highest market share of the smartphone market in the country after Samsung. Last year it sold more than 1-million units, and so far this year the company has recorded a 70% increase in sales.
Our success in South Africa is important because we believe in this market and its potential. We want to continue building brand trust and continue investing through many partnerships as we groW
— Fred Zhou, Honor South Africa CEO
“Our success in South Africa is important because we believe in this market and its potential. We want to continue building brand trust and investing through many partnerships as we grow,” said Honor South Africa CEO Fred Zhou.
He said prior to Honor’s entry in South Africa, there were few smartphone brands in the market, and after 2020, a lot of Chinese brands entered the local market, which increased competition. “South African consumers deserve more advanced and innovative products.”
The company plans to invest $10bn (R188bn) globally over the next five years, developing AI software for a wider range of devices.
Zhou said the company was transitioning from a smartphone maker to building an AI sharing ecosystem. “Honor is not only a handset manufacturer, we want to be a global leading AI device ecosystem company. We are building a co-sharing AI (platform) for partners to break boundaries in different sectors. We are expanding our category to provide a smoother experience to customers,” he said.
With the drive by mobile network operators to increase smartphone penetration, Zhou said the removal of excise duty on smartphones priced below R2,500 would boost the uptake. “From our side, it’s a benefit for OEMs (original equipment manufacturers), but we have passed this benefit to consumers to lower the price.”
He said their phones appeal to a wide range of consumers. “In South Africa, we have noticed the device should fit into the consumer lifestyle,” he said, adding that consumers should not compromise their technological preferences for affordability. “Quality is a main thing for Honor, we have carefully selected products for South Africa at different price points,” he said.
Zhou said devices with more affordable and reliable features, and a long battery life, are a major consideration when purchasing a smartphone. Its new handsets launched this week can go for three days without needing a recharge, depending on the usage.
Honor claims that in the few years it’s been operating in South Africa, the number of its phones requiring repairs was less than 1% of total sales. Retailers contribute most of the sales volume.
The company also makes tablets, laptops, watches, and earbuds. Zhou said the tablet market recorded a slight increase in the first quarter of this year compared to last year. He attributed this to the demand for tablets from schools.
Regarding smartwatches, Zhou said: “We are starting to extend our wearables into more channels in South Africa. We are not doing badly. We tried with Vodacom and are seeing good results. Last month, we were number two on wearables at Vodacom.”
Honor has offices in Johannesburg, Durban and Cape Town and employs 300 people. It has plans to expand into new markets in Africa, including Mozambique, Mauritius, Egypt and Morocco, and is working with distributors in more than 10 countries on the continent.
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