New Delhi: Following a recent report that Shenzhen-based smartphone brand Honor has moved its team out of India, Honor has issued a statement stating that it is maintaining its business operations in India. A report says that Honor’s local partner has moved its team out of India to make way for a new global partner.
Huawei, once India’s biggest smartphone brand, has recently lost some of its market shares due to the US imposing sanctions against the company. Huawei started losing its market share during its peak in 2018. In the same year, Honor gained a 3 percent market share. In 2019, Huawei had a market share of 13 percent, while Honor had a market share of 3.3 percent.
In the subsequent seven years, Honor grew into a smartphone brand that shipped over 70 million units yearly. In the next seven years, Honor designed and developed a smartphone brand that shipped over 70 million units annually. In the next seven years, Honor expanded its business by opening retail stores and partnering with carriers in more than 100 countries. As a result, Honor has become the third largest smartphone vendor in the world, just behind Samsung and Apple.
On May 15, 2019, the US government banned Huawei from doing business with US companies. Huawei is an equipment company, but it has a smartphone division. Affected by the US boycott, Huawei had to shut down the Honor smart mobile phone division and trade with US companies. US Congress has passed a bill that bans US companies from doing business with Huawei.
This bill prevents Huawei from growing its business and potentially gaining more power. US Government had already banned Huawei from doing business with them, and now, US companies will have to stop doing business with Huawei. If a company has already established a relationship with Huawei, they are allowed to keep the relationship. Customers buying Honor smartphones cannot receive any support or warranty from Huawei or Honor.
According to the report, which cites unnamed sources, the company plans to shut down its operations in India and instead focus on “secure products, a very secure approach” that is becoming “more and more mainstream.” The company will continue to serve its Indian customers by “taking a very secure approach.” The company will maintain its presence through partners operating within the country.
Huawei, the world’s second-largest telecoms and electronics company, is struggling to keep its consumer business afloat following US sanctions. The company has sold its Honor smartphone business assets to China-based Shenzhen Zhixin New Information Technology Co Ltd. Huawei controls everything, selling to the US government for show.
Honor brand provides affordable phones to people in the low to mid-end market. Many of their devices pack with advanced off-brand technology, but much of their focus is on the phone’s functionality. To compete in the millennial market, Honor has focused on offering phones to people who want something affordable. There is a wide variety of options for what customers want and what they’re happy with, varying in price and functionality.
Now the ‘Real Me’ company has taken this title into its hands. The owner needs to exit the Indian market but will not leave India after clearing the stock of other products and accessories. HONOR is going to the Indian market because it is ending, which it did in Honor’s last tweet, 2021 #HappyHoli wish, and now there is no tweet.