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Honor Device Co. moves towards IPO, targets luxury smartphone market

EditorNikhilesh Pawar
Published 11/22/2023, 12:57 PM
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SHENZHEN - Honor Device Co., the electronics firm that spun off from Huawei Technologies three years ago, is now advancing towards an initial public offering (IPO) as it aims to restructure its board and diversify funding to compete with industry leaders like Apple (NASDAQ:AAPL) and Samsung (KS:005930) in the high-end mobile market. The Shenzhen-based company, supported by the local government and BOE Technology Group Co., is realigning its governance structure to meet listing regulations.

Today, Honor announced its intention to go public, a strategic move following the U.S. sanctions in 2020 that severely impacted Huawei's access to essential technologies and led to Honor's divestiture. Since then, Honor has redirected its focus from the mid-range segment to the upscale mobile market. Despite being a dominant force in China's smartphone industry, Honor's international presence remains limited. To enhance its global image and market share, the company recently launched two premium foldable models.

As part of its IPO preparation, Honor is overhauling its Board of Directors to ensure diversity and adherence to regulatory standards required for public companies. The restructuring is a critical step in the company's strategy to secure various sources of funding and strengthen its position in the competitive tech industry.

Further cementing its ambition in the luxury segment, Honor introduced its new high-end Magic Vs foldable phone at the Mobile World Congress (MWC) in Barcelona with a $1,700 price tag. This move signifies Honor's commitment to capturing a slice of the premium market dominated by giants like Apple and Samsung. While the company did not disclose the listing venue for its IPO, this development marks a significant milestone in Honor's independent journey since separating from Huawei.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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