• Honor is investing $10 billion over five years to integrate AI across its devices.
• The “Alpha” initiative will bring AI-powered features to smartphones, tablets, PCs, and wearables.

Honor is committing $10 billion over the next five years to drive the AI transformation of its devices, intending to transition from a smartphone manufacturer to an AI-focused technology company.

CEO James Li Jian introduced the company’s “Alpha” initiative in Barcelona ahead of MWC 2025, describing a strategy for integrating AI across smartphones, tablets, wearables, and PCs. He emphasised the importance of industry collaboration, urging partners to share AI capabilities and support a more open AI ecosystem.

“This includes the industry becoming truly open, enabling seamless collaboration across different operating systems,” Li said, underscoring Honor’s goal of building an AI-powered multi-device experience.

Honor expands software support for Magic series

As part of its broader strategy, Honor is extending software support for its Magic series devices, providing seven years of major Android updates and security patches. The announcement follows Qualcomm’s decision to offer eight years of software support for its latest Snapdragon 8 and 7 series chipsets.

The extended update policy places Honor among the few global brands offering long-term software support, ensuring that Magic series users receive at least six major Android updates. The company states that this initiative aligns with its sustainability efforts, aiming to reduce e-waste by encouraging consumers to keep their devices for longer.

Honor says the move aligns with the EU’s Circular Economy and Ecodesign Regulation, which promotes longer product life cycles and environmental sustainability.

Honor’s AI push and market challenges

Honor has been working to integrate AI across its devices, recently incorporating DeepSeek’s R1 model into its Yoyo virtual assistant and search engine for smartphones and laptops.

The company has also formed alliances with big Chinese tech companies, such as Alibaba, Tencent, and ByteDance, to improve AI capabilities in its devices. Internationally, Honor collaborates with Google to integrate Gemini AI models into its devices.

Once a Huawei subsidiary, Honor was sold in 2020 to a consortium of buyers following US sanctions that limited Huawei’s access to key components. Honor continues to operate independently since then, but the Chinese smartphone market is becoming increasingly competitive.

According to IDC, Honor smartphone shipments in China declined 14.9% year on year in Q4 2023. The company’s market share dropped from 16.8% to 13.7%, leaving it fifth behind Apple, Vivo, Huawei, and Xiaomi.

Global expansion and growing market presence

While facing challenges in China, Honor has expanded in other markets. Shipments in the Middle East increased by 67% last year, reaching 3.2 million units, according to Canalys.

The company has also gained ground in Western Europe, surpassing Samsung Electronics to become the top foldable handset maker in Q2 2023, according to Counterpoint Research.

Honor’s global expansion efforts are ongoing, with the firm announcing plans to launch more than 30 products in Indonesia in 2025 as part of a larger strategy to enhance its presence in Southeast Asia.

Long-term vision for AI and sustainability

Honor’s focus on AI-driven devices and long-term software support complies with its goal of building a multi-device AI ecosystem. By providing longer software support, the company intends to extend the usability of its products and contribute to sustainability efforts.

As the battle for AI-driven smartphones heats up, Honor’s ability to differentiate itself through device longevity, AI-powered features, and international expansion will be critical to its growth strategy.

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