Honor launched the Magic Vs foldable smartphone globally in a bid to take on Samsung in the premium end of the handset market.
Honor
BARCELONA, Spain — Chinese smartphone maker Honor launched its foldable phone globally on Sunday, as it looks to compete with Apple and Samsung in the premium tier of the market.
The Honor Magic Vs was first launched in China in November. Now the company is bringing the device to a number of markets abroad, including the U.K., Germany and countries in Latin America.
It marks the Chinese firm’s ambition to expand into the latest smartphone technology — foldables — at the high end of the market, where it will compete with the likes of Apple and Samsung.
Honor was spun off from Huawei, after a number of U.S. sanctions cut the Chinese telecommunications giant off from critical chips and access to Google’s Android mobile operating system, crushing its smartphone business. As a separate entity, Honor has access to Android and to the components that it needs for its high-end devices.
Huawei sold Honor to a consortium of buyers that includes the government of its headquarters city, Shenzhen. Honor was the budget brand under Huawei, but has looked to market itself as a premium player since its independence, filling the gap that Huawei once did.
The company has been trying to distance itself from Huawei and establish itself independently.
“Although Honor is operating as a completely independent entity, it still has to regularly explain that is it not part of Huawei. Over time this is becoming less of an issue, but it is still a challenge it faces,” Ben Wood, chief of research at CCS Insight, told CNBC via email.
Honor Magic Vs specs
The Honor Magic Vs is a so-called foldable smartphone. These are devices that have a screen that can bend. Honor said it has tested the device by folding it and opening it up to 400,000 times with no problem.
Honor’s smartphone runs Android and has a 7.9-inch display when it is fully open. The phone also has a second display on the outside of the device when it is folded, which is 6.45 inches.
But the foldable phone category, which was pioneered by Samsung, is still in the early phases. Foldable devices accounted for only 1.1% of total smartphone shipments in 2022, according to IDC, and this share is expected to increase to just 2.8% in 2026.
The Magic Vs is one of the first foldable devices available in markets outside of China, as Honor attempts to get ahead in the nascent segment of smartphones.
High-end push
While Honor has emerged as one of the biggest smartphone players in China, it has yet to find similar success overseas. It will be hoping its more premium devices can help it win users abroad.
Honor will be hoping to wrestle back some of those users.
“I’ve been impressed by the products that Honor has unveiled and some of the DNA harking from its roots as formally being part of Huawei are clear in the quality of the products. Huawei was snapping at Samsung’s heels when it got stopped in its tracks by the U.S. administration and was setting the benchmark amongst Chinese smartphone makers,” Wood said.
“Honor now needs to assert its independence and start on the long road of establishing its brand in Western markets in a similar manner to other Chinese phone makers. This took Huawei nearly a decade, so there is a significant journey ahead for all those companies seeking to compete with Samsung and Apple.”
A Zoox autonomous robotaxi in San Francisco, California, US, on Wednesday, Dec. 4, 2024.
David Paul Morris | Bloomberg | Getty Images
Amazon‘s Zoox robotaxi unit issued a voluntary recall of its software for the second time in a month following a recent crash in San Francisco.
On May 8, an unoccupied Zoox robotaxi was turning at low speed when it was struck by an electric scooter rider after braking to yield at an intersection. The person on the scooter declined medical attention after sustaining minor injuries as a result of the collision, Zoox said.
“The Zoox vehicle was stopped at the time of contact,” the company said in a blog post. “The e-scooterist fell to the ground directly next to the vehicle. The robotaxi then began to move and stopped after completing the turn, but did not make further contact with the e-scooterist.”
Zoox said it submitted a voluntary software recall report to the National Highway Traffic Safety Administration on Thursday.
A Zoox spokesperson said the notice should be published on the NHTSA website early next week. The recall affected 270 vehicles, the spokesperson said.
The NHTSA said in a statement it had received the recall notice and that the agency “advises road users to be cautious in the vicinity of vehicles because drivers may incorrectly predict the travel path of a cyclist or scooter rider or come to an unexpected stop.”
If an autonomous vehicle continues to move after contact with any nearby vulnerable road user, it risks causing harm or further harm. In the AV industry, General Motors-backed Cruise exited the robotaxi business after a collision in which one of its vehicles injured a pedestrian who had been struck by a human-driven car and was then rolled over by the Cruise AV.
Zoox’s May incident comes roughly two weeks after the company announced a separate voluntary software recall following a recent Las Vegas crash. In that incident, an unoccupied Zoox robotaxi collided with a passenger vehicle, resulting in minor damage to both vehicles.
The company issued a software recall for 270 of its robotaxis in order to address a defect with its automated driving system that could cause it to inaccurately predict the movement of another car, increasing the “risk of a crash.”
Amazon acquired Zoox in 2020 for more than $1 billion, announcing at the time that the deal would help bring the self-driving technology company’s “vision for autonomous ride-hailing to reality.”
While Zoox is in a testing and development stage with its AVs on public roads in the U.S., Alphabet’s Waymo is already operating commercial, driverless ride-hailing services in Phoenix, San Francisco, Los Angeles and Austin, Texas, and is ramping up in Atlanta.
Teslais promising it will launch its long-delayed robotaxis in Austin next month, and, if all goes well, plans to expand after that to San Francisco, Los Angeles and San Antonio, Texas.
Shares of Intuit popped about 9% on Friday, a day after the company reported quarterly results that beat analysts’ estimates and issued rosy guidance for the full year.
Intuit, which is best known for its TurboTax and QuickBooks software, said revenue in the fiscal third quarter increased 15% to $7.8 billion. Net income rose 18% to $2.82 billion, or $10.02 per share, from $2.39 billion, or $8.42 per share, a year earlier.
“This is the fastest organic growth that we have had in over a decade,” Intuit CEO Sasan Goodarzi told CNBC’s “Closing Bell: Overtime” on Thursday. “It’s really incredible growth across the platform.”
For its full fiscal year, Intuit said it expects to report revenue of $18.72 billion to $18.76 billion, up from the range of $18.16 billion to $18.35 billion it shared last quarter. Analysts were expecting $18.35 billion, according to LSEG.
“We’re redefining what’s possible with [artificial intelligence] by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses,” Goodarzi said in a release Thursday.
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Goldman Sachs analysts reiterated their buy rating on the stock and raised their price target to $860 from $750 on Thursday. The analysts said Intuit’s execution across its core growth pillars is “reinforcing confidence” in its growth profile over the long term.
The company’s AI roadmap, which includes the introduction of AI agents, will add additional upside, the analysts added.
“In our view, Intuit stands out as a rare asset straddling both consumer and business ecosystems, all while supplemented by AI-prioritization,” the Goldman Sachs analysts wrote in a note.
Analysts at Deutsche Bank also reiterated their buy rating on the stock and raised their price target to $815 from $750.
They said the company’s results were “reassuring” after a rocky two years and that they feel more confident about its ability to grow the consumer business.
“Longer term, we continue to believe Intuit presents a unique investment opportunity and we see its platform approach powering accelerated innovation with leverage, thus enabling sustained mid-teens or better EPS growth,” the analysts wrote in a Friday note.
FILE PHOTO: Apple CEO Tim Cook escorts U.S. President Donald Trump as he tours Apple’s Mac Pro manufacturing plant with in Austin, Texas, U.S., November 20, 2019.
Last week, Trump said he “had a little problem with Tim Cook,” and on Friday, he threatened to slap a 25% tariff on iPhones in a social media post.
Trump is upset with Apple’s plan to source the majority of iPhones sold in the U.S. from its factory partners in India, instead of China. Cook officially confirmed this plan earlier this month during earnings.
Trump wants Apple to build iPhones for the U.S. market in the U.S. and has continued to pressure the company and Cook.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted on Truth Social on Friday.
Analysts said it would probably make more sense for Apple to eat the cost rather than move production stateside.
“In terms of profitability, it’s way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US,” wrote Apple supply chain analyst Ming-Chi Kuo on X.
UBS analyst David Vogt said that the potential 25% tariffs were a “jarring headline,” but that they would only be a “modest headwind” to Apple’s earnings, dropping annual earnings by 51 cents per share, versus a prior expectation of 34 cents per share under the current tariff landscape.
Experts have long held that a U.S.-made iPhone is impossible at worst and highly expensive at best.
Analysts have said that made in U.S.A. iPhones would be much more expensive, CNBC previously reported, with some estimates ranging between $1,500 to $3,500 to buy one at retail. Labor costs would certainly rise.
But it would also be logistically complicated.
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Supply chains and factories take years to build out, including installing equipment and staffing up. Parts that Apple imported to the United States for assembly might be subject to tariffs as well.
Apple started manufacturing iPhones in India in 2017 but it was only in recent years that the region was capable of building Apple’s latest devices.
“We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible,” wrote Wedbush analyst Dan Ives in a note on Friday.
Other analysts were wary about predicting how Trump’s threat ultimately plays out. Apple might be able to strike a deal with the administration — despite the eroding relationship — or challenge the tariffs in court.
For now, most of Apple’s most important products are exempt from tariffs after Trump gave phones and computers a tariff waiver — even from China — in April, but Apple doesn’t know how the Trump administration’s tariffs will ultimately play out beyond June.
“We’re skeptical,” that the 25% tariff will materialize, wrote Wells Fargo analyst Aaron Rakers.
He wrote that Apple could try to preserve its roughly 41% gross margin on iPhones by raising prices in the U.S. by between $100 or $300 per phone.
It’s unclear how Trump intends to target Apple’s India-made iPhones. Rakers wrote that the administration could put specific tariffs on phone imports from India.
Apple’s operations in India continue to expand.
Foxconn, which assembles iPhones for Apple, is building a new $1.5 billion factory in India that could do some iPhone production, the Financial Times reported Thursday.