Huawei and Honor reveal their new dual brand strategy

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Richard Yu, CEO of Huawei’s Consumer division, has announced the new dual brand strategy for Huawei and Honor devices. This builds on his strategic goals from 2012 that have been executed successfully.

Huawei wants to be the largest smartphone maker in the world. The goal for Honor is to follow closely, aiming for fourth largest brand globally and second place in China. Huawei and Honor will work closely to develop innovative technologies in the future and will cooperate in distribution and retail.

The consumer division is now the largest inside Huawei. Last year it outperformed the Huawei carrier network business with sales of CNY 348.9 billion

($52 billion), which represents a massive year on year increase of 45.1%.

Honor grew even faster, 170% year on year, and is ranked second in online sales by volume globally according to IDC. The brand is set to introduce its first 5G device later this year, which along with Huawei's own Mate X ties in nicely with Huawei’s network business.

As for the goals that Yu set in front of Huawei back in 2012, they include transitioning away from being an ODM to a proper OEM and dropping the low-margin ultra-low-end phones. Also, incorporating chips from HiSilicon (both Kirin chipsets and Balong modems) and developing EMUI. Check and check.

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