The smartphone brand that Huawei sold off is regaining market share in China

Honor notched a 15% market share in China in August, making it the third-largest smartphone player within the country — the first time it has held that place in a year, Counterpoint analysis said.

In November, Huawei spun off Honor to make certain the brand's survival as a result of U.S. sanctions on the chinese expertise huge bring to an end supplies to key components and crippled its smartphone enterprise.

In international markets, Honor will face stiff competitors from the likes of Apple and Samsung as well as Xiaomi, which has persisted to steal the market share lost with the aid of Huawei.

© offered via CNBC A citizen shows Honor 50 smartphone on June sixteen, 2021 in Shanghai, China.

GUANGZHOU, China — Honor, the smartphone manufacturer Huawei spun off ultimate yr, is beginning to regain share in China's fiercely aggressive cell market.

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Honor notched a 15% market share in China in August, making it the third-biggest smartphone player in the country — the primary time it has held that position in a yr, Counterpoint research spoke of in a record on Wednesday.

The smartphone business trails home rivals Oppo and Vivo. revenue of Honor devices rose 18% in August compared to July, making it one of the fastest growing to be manufacturers in China.

In November, Huawei offered its budget company Honor to a consortium of patrons including the executive of Shenzhen, the city where its headquarters is observed.

Huawei did that to be sure Honor survived as a result of U.S. sanctions on the chinese language technology colossal bring to a halt materials to key add-ons and crippled its smartphone business, which protected Honor at the moment. promoting it off allowed Honor to get entry to the important thing components like semiconductors once more.

"After being spun off from Huawei, Honor changed into able to restore ties with part avid gamers," Tarun Pathak, analysis director at Counterpoint analysis, spoke of in an announcement. "considering then, leveraging its amazing R&D [research and development] capabilities, Honor has launched new products and has been on a fast recovery route in China."

In January, Honor launched a mid-latitude telephone called the V40, followed with the aid of the honour 50 in June. This month, it launched the higher conclusion Honor three series of smartphones which will be launched in China and different international markets together with Europe.

"Honor is additionally targeting the top class phase with the Magic collection, as a result increasing its portfolio across price bands," Pathak mentioned.

"There became additionally a pent-up demand from the loyal Huawei and Honor patrons who held on to their devices and did not change to other manufacturers. Its strong relationships with distributors also helped Honor relaunch products on a large scale. Honor's resurrection will additional intensify competition in the chinese language market in H2 2021," Pathak spoke of.

Honor is targeting international markets but success there might possibly be tougher to locate. Its international market share hit 3.7% in August, up from 1.5% in February, however that's peculiarly as a result of good points in China, Neil Shah, research director at Counterpoint research, advised CNBC.

In overseas markets, Honor will face stiff competitors from the likes of Apple and Samsung, in addition to China's Xiaomi, which has endured to steal the market share misplaced by using Huawei.

"boom backyard China is probably going to be gradual, as loyalty within the mid-section remains low and Honor will even have to rebuild its distribution network. Then, there are also intensifying component shortages that may possible preclude Honor's enlargement in 2021," referred to Varun Mishra, senior analyst at Counterpoint research, in a press release.

Mishra was regarding the scarcity of semiconductors it really is at the moment affecting industries throughout the board from autos to purchaser electronics.