Chinese smartphone company Honor has released devices that fold up to be nearly as thin as an iPhone.
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BARCELONA — Honor on Sunday pledged $10 billion in artificial intelligence investments over the next five years and announced a deepening partnership with Google, as the Chinese smartphone maker looks to bolster its market share overseas.
The investment plan, revealed at Mobile World Congress in Barcelona, is designed to reposition the firm from a smartphone player into an “AI device ecosystem company,” according to Honor.
The Chinese company is somewhat of an upstart in the smartphone world, after spinning off from Huawei in 2020 when the tech giant was hit with U.S. sanctions. Since then, Honor has looked to expand outside of China and push into the higher-end part of the market where Apple and Samsung play.
The company has made some headway by releasing some innovative devices, including foldable phones, but it still remains a small player globally. Its smartphone market share outside of China stood at 2.3% in 2024 versus 1.7% in 2023, according to IDC data.
An Honor spokesperson told CNBC the money would go toward putting AI into hardware as well as next generation AI agents, which are often described as more advanced virtual assistants.
Another part of the investment will go toward creating a “platform for a wide range of AI devices.”
“This is not limited to our own devices, but also AI devices from different partners, so the different kinds of AI devices can talk to each other, and consumers can have more choices and seamless experiences,” the Honor spokesperson said.
A small portion of the investment will also be used to “prepare for the AGI (Artificial General Intelligence) era.”
AGI generally refers to AI that is smarter than humans.
Closer Google ties
On Sunday, Honor demonstrated a proof of concept “AI agent”. One example involved a user asking the agent to book a restaurant with specific requirements, such as the type of preferred cuisine and the distance from the user. The agent went ahead and made a reservation. Honor said it is working with Google and chip designer Qualcomm on developing its AI agent, but did not give a timeline for its release.
Meanwhile, Honor is also using the technology behind Google Gemini, the U.S. firm’s AI system, for the AI features on its latest devices.
Meanwhile on Sunday, Honor announced that it would commit to seven years of employing the Android operating system and security updates for its Magic series of flagship smartphones — becoming just one of very few vendors to pledge this. Google’s own Pixel devices and Samsung’s S series of flagship smartphones are the only other devices to offer similar support.
Android is the operating system created by Google. While the seven year support is not directly related to Google, it highlights Honor’s commitment to the operating system.
While there are many Android smartphone players, not all of them have as close a tie to Google as do Samsung, the biggest Android user in the world, and Xiaomi, the second largest. Honor is now joining that list.
“Honor’s deeper partnership with Google is very significant,” Ben Wood, chief analyst at CCS Insight, told CNBC. “To date, it has felt as though Google was keeping Chinese smartphone makers at arm’s length when it came to the most advanced aspects of Gemini AI, but this appears to put the Honor on par with Samsung Galaxy and Google’s own Pixel products which is quite a coup.”
The position was valued at about $160 million as of Wednesday’s close.
Tripadvisor shares have been flat since the start of the year after plummeting more than 30% in 2024. Last year, the travel review and booking company said it created a special committee to explore potential options.
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Starboard Value has gained a reputation for pushing for changes such as new CEOs and cost cuts by acquiring significant shares in companies.
People stand in front of an Apple store in Beijing, China, on April 9, 2025.
Tingshu Wang | Reuters
Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint Research said, as the tech giant looks to turnaround its business in one of its most critical markets.
Sales of iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023.
Apple’s performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16 models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.
“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.
Apple’s return to growth in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces a number of headwinds.
Since then, Huawei has aggressively launched devices in China and has even begun dipping its toe back into international markets. The Chinese tech giant has found success eating away at some of Apple’s market share in China.
Huawei’s sales rose 12% year-on-year in the second-quarter, according to Counterpoint. The firm was the biggest player in China by market share in the second quarter, followed by Vivo and then Apple in third place.
“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” Counterpoint Senior Analyst Ivan Lam said.
Chinese tech giant Baidu has bolstered its core search platform with artificial intelligence in the biggest overhaul of the product in 10 years.
Analysts told CNBC the move was a bid to keep ahead of fast-moving rivals like DeepSeek, rather than traditional search players.
“There has been some small pressure on the search business but the focus on AI and Ernie Bot is a key move ahead,” Dan Ives, global head of tech research at Wedbush Securities, told CNBC by email. Ernie Bot is Baidu’s AI chatbot.
“Baidu is not waiting around to watch the paint dry, full steam ahead on AI,” he added.
Baidu AI overhaul
Baidu is China’s biggest search engine, but — as is also being seen by Google — the search market is being disrupted.
Users are flocking instead to AI services such as ChatGPT or DeepSeek, which shocked the world this year with its advanced model it claimed was created at a fraction of the cost of rivals.
But Kai Wang, Asia equity market strategist at Morningstar, also noted that short video platforms such as Douyin and Kuaishou are also getting into AI search and piling pressure on Baidu.
To counter this, Baidu made some major changes to its core search product:
Users can now enter more than a thousand characters in the search box, versus 28 previously;
Questions can be asked in a more direct and conversational manner, mirroring how people now use chatbots;
Users can ask questions through voice but also prompt the seach engine with pictures and files;
Baidu has integrated its AI chatbot features, which enable users to generate photos, text and videos, into the product.
“This is more aligned with how people use ChatGPT and DeepSeek in terms of how they look for answers,” Wang said.
Outside of China, Google has also been looking to enhance its core search product with AI, highlighting how search has been under pressure from the burgeoning technology.
Baidu on the offense
Baidu was one of China’s first movers when it came to AI, releasing its first models and ChatGPT-style product Ernie Bot to the public in 2023. Since then, it has aggressively launched updated AI models.
However, the Beijing-headquartered company has also faced intense competition from fellow tech giants like Alibaba and Tencent, as well as upstarts such as DeepSeek.
These companies have also been launching new models and infusing AI into their products and Baidu’s stock has fallen behind as a result. Baidu shares have risen around 2.5% this year, versus a 30.5% surge for Alibaba and a 20% rise for Tencent.
“This is a defensive and offensive move … Baidu needs to be aggressive and perception-wise show they are not the little brother to Tencent on the AI front,” Wedbush Securities’ Ives added.
