The Rising Popularity of a Foldable Smartphone Competing with Apple iPhone Models in China

Honor Magic V2 Foldable Ranks Among Top Smartphones in China

Honor Magic V2 Gains Popularity on Chinese E-commerce Site

On JD.com's "hot sales" smartphone rankings in China, the Honor Magic V2 foldable is competing with Apple iPhone models for the top three spots. Launched on July 12, the Magic V2, often just called the "foldable smartphone," has gained significant popularity, with a starting price of 8,999 yuan ($1,245). Despite officially starting sales on Thursday, the high demand during the pre-sale period has led to delivery times for new orders being pushed to mid-September. As of Thursday morning, the 9,999-yuan model of the Magic V2 ranked second in popularity among JD.com smartphone sales.

Comparing Honor Magic V2 and Apple iPhone 14 Pro

The Honor Magic V2 foldable measures 9.9 millimeters in thickness when folded, nearly as thin as an iPhone. In comparison, the iPhone 14 Pro is 7.85 millimeters thick without a case. The Magic V2's thinness and lightweight design have been highlighted by Ethan Qi, associate director at Counterpoint Research. Honor claims that the Magic V2's battery, measuring just 2.72 millimeters thick, can support approximately 14 hours of video watching on the phone's unfolded large screen. In contrast, the iPhone 14 claims 20-30 hours of video watching on a single battery charge, depending on the model.

Growth of Foldable Smartphones in China

Foldable smartphones have seen significant growth in the Chinese market. In the first quarter of this year, China's foldable market more than doubled from the previous year to 1.08 million units, contributing to a 64% year-on-year growth in the global foldable smartphone market. This growth is in stark contrast to the shrinking global smartphone market, which fell by 14.2% in the first three months of the year. Honor, which sells internationally, has not yet disclosed its specific plans for the Magic V2 in international markets.

Competition and Livestreaming Sales in China

Competition in the foldable smartphone market is intensifying, with Samsung set to release slimmer and lighter foldables in July. Huawei, Xiaomi, and Vivo also sell foldables in China within the premium price range. In China, Honor is selling its phones on various major e-commerce platforms, including Douyin, which has emerged as a popular portal for livestreaming sales. Livestreaming sales have become a significant trend in China, accounting for about 17.7% of overall online retail sales in the first half of this year. Honor also sells its phones on Alibaba's Tmall e-commerce platform and the Kuaishou short video app.

Opportunities and Challenges for New Businesses in the Foldable Smartphone Market

The success of the Honor Magic V2 foldable smartphone in China's competitive market highlights both opportunities and challenges for new businesses looking to enter the foldable smartphone industry.

Firstly, the popularity of the Magic V2 and the significant growth of foldable smartphones in China demonstrate the growing demand for innovative and versatile mobile devices. As the Chinese market more than doubled in the first quarter of this year, it indicates a potential market for new businesses to tap into. The Magic V2's thinness and lightweight design, combined with its competitive pricing, have contributed to its popularity among consumers. This suggests that new businesses should focus on offering compact and feature-rich foldable smartphones at attractive price points to capture customer interest.

However, new businesses will face intense competition from established players such as Samsung, Huawei, Xiaomi, and Vivo, who already have a presence in the foldable smartphone market in China. The imminent release of slimmer and lighter foldables by Samsung further increases competition and emphasizes the need for new businesses to differentiate themselves with unique features and value propositions.

Furthermore, leveraging popular e-commerce platforms like JD.com, Douyin, and Alibaba's Tmall, as well as embracing trends like livestreaming sales, can provide new businesses with the opportunity to reach a wide audience and boost sales.

In conclusion, entering the foldable smartphone market requires a careful balance of innovation, competitive pricing, and effective marketing strategies. While there is potential for new businesses to succeed, they must differentiate themselves from established players and adapt to the evolving trends in both technological advancements and consumer behaviors.



Article First Published at: https://www.cnbc.com/2023/07/20/honors-magic-v2-foldable-smartphone-as-popular-as-an-iphone-in-china.html