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China’s Honor announces pivot into new AI devices

Published: 2025-03-03 07:29 +02:00 by David Kirton tag: Electronics and hardware

JSE:MPT

Honor aims to expand from being primarily a smartphone company and develop PCs, tablets and wearables.
Chinese smartphone maker Honor will spend US$10-billion over the next five years on developing AI for its devices as the former Huawei unit prepares for a public listing, its CEO James Li said on Sunday.

The Shenzhen-based company aims to expand from being primarily a smartphone company and develop a system of AI-powered PCs, tablets and wearables, Li said in a speech at the Mobile World Congress trade show in Barcelona.

In December, Honor said it had completed a shareholder restructuring that moved it closer to an initial public offering, though no timeline has been announced.

Honor aims to develop a system of AI-powered PCs, tablets and wearables

Honor’s announcement comes amid a boom in Chinese AI investment spurred by interest in start-up DeepSeek’s low-price large language models, with interested parties from local governments to home appliance makers rushing to integrate DeepSeek’s technology or do more AI research.

Last year, Honor slipped from second to fourth place in terms of China phone shipments, with a 14.9% market share, amid renewed competition from its former parent, Huawei, and strong growth from Vivo, according to consultancy IDC.

Read: China to subsidise consumer smartphone purchases

In August, Reuters reported that Honor was receiving a high level of support from the Shenzhen local government in terms of research and development funding, tax breaks and support for expanding overseas. — (c) 2025 Reuters

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