A new battle in the sub-1000 yuan phone market: Honor defends, OV challenges

10/08 2024 423

Long battery life and durability are still key selling points for sub-1000 yuan phones.

On October 8, Honor officially announced that total sales of the Honor X50 series have surpassed 15 million units. Considering that the Honor X50 series announced sales of over 10 million units in early May, this means that in the past five months, another 5 million units of the Honor X50 series have been sold, equivalent to an average of 1 million units per month.

For a model launched in July 2023, this achievement is remarkable. Honor's official announcement also provides a very specific and vivid metaphor for what the 15 million sales of the Honor X50 series actually mean:

The average thickness of each Honor X50 unit is 7.98mm, and stacking 15 million Honor X50 units would reach a total height exceeding that of 13 Mount Everests.

Image/Honor

Of course, for a phone, this number represents not only sales success but also domestic consumers' recognition of the product capabilities of the Honor X50 series. In fact, not only consumers but also other phone manufacturers have noticed the tremendous success of the Honor X50, and have subsequently launched competing models this year, such as the OPPO K12 series and vivo Y200 series.

This also proves from another angle that the success of the Honor X50 series is not due to luck but rather the result of precise market positioning and product capabilities that have won over a large number of consumers. However, as Honor's slogan on the promotional poster says, can Honor create "new peaks" on the X60 series, building upon the "peaks" achieved with the X50 series?

15 million units sold: Honor X50 becomes a "legendary phone"

From any perspective, it is quite astonishing that the Honor X50 series has sold 15 million units in approximately 15 months.

Taking Huawei's P series as an example, according to a report by the renowned analysis firm TechInsights, the peak sales of the P series were achieved by the P30 series in 2019, with final sales reaching approximately 15.8 million units. In contrast, according to a report published by market research firm IDC, Xiaomi, which ranked fifth in China's mobile phone market in the second quarter of this year, sold just over 10 million units in three months.

Image/IDC

Even as a sub-1000 yuan phone targeting the mid-range and entry-level markets, the sales of the Honor X50 series are still impressive. The only comparable model may be Xiaomi's Redmi Note 13 series, which announced in May that global sales of the series had surpassed 15 million units.

However, the starting price of the Redmi Note 13 series is lower, with the 6+128GB version priced at 1099 yuan and the 8+128GB version at 1199 yuan. In contrast, the starting price of the 8+128GB version of the Honor X50 is 1399 yuan, making the entry threshold higher.

More importantly, Xiaomi has an earlier and more comprehensive presence in the global market, particularly in India and other markets. In contrast, the restructured Honor did not begin its international expansion until 2022, with a focus on the European market in 2023 as its "European Year."

It was not until the end of 2023 that news emerged of Honor's return to the Indian market, with the Magic 6 Lite (overseas version of the Honor X50) subsequently launched overseas.

In other words, the majority of the total sales of the Honor X50 series are actually from the domestic market. Conversely, the Honor X50 series relies primarily on the domestic market to achieve sales of 15 million units. If Honor can further improve its global market layout, global sales can undoubtedly increase further.

Honor's X series aims to dominate the sub-1000 yuan phone market

Why has the Honor X50 series been so successful? External analysts generally believe that the focus is on durability. Indeed, aside from featuring a curved screen in a sub-1000 yuan phone, the Honor X50's primary selling point is "reliability," which is reflected not only in its long battery life of 5800mAh but also in its shock resistance and other aspects.

In Honor's official promotions, the Honor X50 has obtained the world's first Swiss SGS Five-Star Drop Resistance and Durability Certification for the entire device, primarily relying on Honor's proprietary "Tai Chi Shock Absorption Architecture" and low-modulus shock-absorbing materials. While not delving deeply into the shock resistance technology of the Honor X50, market feedback indicates that it indeed offers impressive reliability at its price point.

Image/Honor

Consumers certainly appreciate this. Everyone is afraid of dropping their phones, especially those who have experienced countless "free falls" from their hands. However, before this, sub-1000 yuan phones and even mid-range phones did not place much emphasis on durability.

The key to the success of the Honor X50 lies precisely in its precise market positioning at the sub-1000 yuan price point and balanced product definition.

Firstly, in terms of pricing, the Honor X50 can be said to have accurately targeted consumers at this price point. The starting price of the X50 series is 1399 yuan, and consumers at this price point are usually very sensitive to price while also hoping to obtain the best possible user experience, particularly in terms of noticeable aspects such as design, screen, and battery life.

Therefore, the Honor X50 does not opt for a higher-end chip but instead equips a Qualcomm Snapdragon 6 Gen 1. In contrast, the Honor X50 boasts a 5800mAh battery, a 108MP main camera, and a curved screen with a 120Hz refresh rate.

These features are typically found in higher-priced models, and by offering these premium specifications at the sub-1000 yuan price point, Honor has attracted a large number of mid-range and entry-level users.

Jiang Hairong, CMO of Honor China, announces the Honor X50 series. Image/Honor

Users of sub-1000 yuan phones have different expectations from flagship phone users, with a greater focus on practicality and durability. The Honor X50 enhances shock resistance through material and design innovations and offers long battery life with a large battery, making it ideal for users who frequently use their phones but do not want to replace them often.

Especially in the domestic market, where mobile phones are an essential tool for daily life, durable and shock-resistant designs are highly practical selling points for most consumers, let alone those purchasing sub-1000 yuan phones.

Market research firm Counterpoint has reported that the replacement cycle for mobile phones in the domestic market has reached 40 months. This means that most people replace their phones only once every three years or more. Strategies to enhance phone reliability and durability are, to a certain extent, catering to this market trend:

Since users have a long replacement cycle, they are more likely to choose more durable products when replacing their phones.

After the Honor X50 series has been validated by the market, we can see that various manufacturers have also launched mid-range and even sub-1000 yuan phones emphasizing durability this year. At the OPPO K12 launch event in April, not only was a power drill used to demonstrate the phone's durability, but OPPO's product manager also stomped on it with high heels several times.

OPPO K12 launch event. Image/OPPO

As for the vivo Y200, it follows in the footsteps of the Honor X50 and OPPO K12, emphasizing durability, long battery life, and premium design. The difference is that the vivo Y200 is more targeted at extreme use cases, such as those faced by food delivery riders, in its design and promotion.

Can the Honor X60 continue the success of the X50?

While announcing that total sales of the Honor X50 series have surpassed 15 million units, Honor also announced that the Honor X60 series will be launched on October 16, 2024.

As the successor to the Honor X50 series, the X60 series has undergone upgrades in multiple aspects, particularly in terms of battery life and durability. With various manufacturers launching durable, long-lasting models, it remains to be seen whether the Honor X60 can continue the success of the X50.

In terms of design, based on details from the official poster, the Honor X60 continues the star ring design similar to that of the Huawei Mate 60 series. In terms of performance, it is basically confirmed to be equipped with the MediaTek Dimensity 7025 chip, which represents a significant upgrade from the Qualcomm Snapdragon 6 Gen 1. Coupled with 12GB of RAM and a 120Hz high refresh rate screen, the overall configuration is impressive and sufficient to meet the performance and user experience demands of the mid-range market.

Notice the phone in the top right corner of the poster. Image/Honor

This means that the Honor X60 can not only attract users with its battery life and durability but also meet the demands of gaming and multitasking scenarios with its performance capabilities.

Undoubtedly, battery life will be one of the key selling points of the Honor X60 series. Reports indicate that the Honor X60 will be equipped with a 6000mAh Qinghai Lake battery, utilizing silicon-carbon anode battery technology to not only enhance battery life but also maintain a sleek and lightweight design. At the same time, the Honor X60 will continue the durable design of the X50 series, emphasizing shock resistance.

Of course, with other manufacturers such as vivo and OPPO launching similar long-lasting and durable models, the competitive pressure on the Honor X60 cannot be ignored. However, with its comprehensive upgrades in battery life, durability, and performance, the Honor X60 series is poised to continue the success of the X50.

More importantly, the sub-1000 yuan phone market focused on long battery life and durability is not necessarily a zero-sum game. As more manufacturers enter and explore this market, more users may come to understand that within the 1000-2000 yuan price range, long battery life and durability are the most important factors for a phone.

Source: Leitech

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