- Honor will invest $10 billion over five years to develop AI-powered devices, including PCs, tablets, and wearables.
- The company has completed a shareholder restructuring, moving closer to an IPO, but has not announced a timeline.
Chinese smartphone manufacturer Honor has announced a $10 billion investment over the next five years to enhance artificial intelligence (AI) capabilities in its devices. The move marks a strategic expansion for the company as it prepares for a potential public listing, according to CEO James Li.
Speaking at the Mobile World Congress (MWC) trade show in Barcelona, Li outlined Honor’s vision to evolve beyond smartphones by developing a broader ecosystem of AI-powered products, including PCs, tablets, and wearables. The Shenzhen-based company aims to leverage AI to strengthen its position in the competitive consumer electronics market.
Honor’s decision to ramp up AI investment comes amid a surge in AI development across China. The country has seen heightened interest in AI-driven innovations, particularly with startup DeepSeek’s low-cost large language models attracting attention from local governments and consumer electronics manufacturers. Companies across industries are now racing to integrate AI solutions or increase research in the field.
The company’s push for AI-driven growth also aligns with its broader business ambitions. In December, Honor announced it had completed a shareholder restructuring, a significant step toward an initial public offering. However, the company has not disclosed a timeline for its stock market debut.
Despite its aggressive expansion efforts, Honor has faced challenges in maintaining its market position. According to research firm IDC, the company slipped from second to fourth place in China’s smartphone market last year, holding a 14.9% market share. The decline came as competition intensified, particularly from its former parent company Huawei and fast-growing rival Vivo.
Honor continues to receive strong backing from the Shenzhen local government, which has supported its research and development through funding, tax incentives, and assistance in expanding its global presence.
Edited by Harshajit Sarmah
