HONOR’s overseas business emerged as a major growth driver in 2025, driven by strong shipment gains, a focus on mid-to-high-end devices, and a regionally stratified expansion strategy. According to Omdia, the company’s international shipments grew approximately 55% year-on-year in 1Q–3Q 2025, the strongest growth among the top 10 global smartphone vendors.
Shipment Performance
Over the past five years, HONOR’s overseas shipments increased from under 10% of total volume in 2021 to nearly half by 3Q25. This marks a strategic transition where international operations have shifted from a minor contributor to a central driver of scale, geographic diversification, and operational resilience.
Focus on Mid-to-High-End Devices
HONOR has prioritized the $300–499 price segment, representing about 23% of its overseas shipments in the first three quarters of 2025, the highest proportion among major Chinese vendors. This segment focus involves:
- Channel Strategy: Strong engagement with branded retail stores and key account partners to maintain control over consumer touch points.
- Product Strategy: Integration of local consumer insights in product development, emphasizing battery life, durability, and AI features (examples include X9d, HONOR 400, and Magic V5).
- Marketing Execution: In-store AI demonstrations and experiential initiatives to facilitate adoption of AI functionalities.
Regional Expansion Strategy
Europe
Europe is central to HONOR’s premiumization strategy. In 1Q–3Q25, HONOR held top-five positions in major Western European markets such as the UK and France. The Magic V5, recognized for slim design, battery endurance, and AI features, achieved second place in Western Europe’s book-style foldable segment. Central and Eastern Europe also showed growth, with shipments rising 15%, reflecting increased market traction.
Latin America
Latin America remains a core volume contributor. HONOR strengthened its presence in Mexico and Central America while expanding in Ecuador and parts of the Caribbean, enhancing regional resilience. Key events like the 2026 FIFA World Cup are expected to support consumer demand and telco-led promotional activity.
Middle East & Africa
This region is the primary incremental growth engine. Shipments are approaching Latin America’s levels. HONOR leverages premium channels, operator partnerships, and localized product specifications, particularly in Gulf Cooperation Council (GCC) markets, to support ASP expansion.
South-Eastern Asia
South-Eastern Asia is a developing growth frontier. Local manufacturing initiatives in Indonesia and brand/service hubs in Malaysia support supply resilience and regulatory alignment. Flagship models have gained traction, backed by retail expansion, service centers, and in-store AI experiences.
Challenges and Opportunities
- Supply Constraints: Rising NAND and DRAM prices may affect cost and availability, particularly for midrange models.
- AI Services: Differentiation within Google’s ecosystem is limited; localized AI experiences are crucial for service monetization.
- Emerging Market Localization: Early-stage local manufacturing in Indonesia and Bangladesh may constrain cost optimization and operational agility compared to peers with mature overseas manufacturing.
HONOR’s medium-term growth depends on unlocking underpenetrated markets and expanding premium segment monetization through AI-led services.
Outlook
HONOR’s overseas expansion in 2025 demonstrates a structured approach combining mid-to-high-end device focus, regional execution, and AI-driven product features. Sustaining this momentum will rely on managing supply risks, deepening localization, and monetizing AI-led services beyond hardware.
Continued investment in localization, channel depth, and experiential retail is expected to support growth. The company’s emphasis on premium devices, strategic regional presence, and AI-led initiatives positions it to maintain momentum across Europe, Latin America, Middle East, and South-Eastern Asia in the coming years.