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In 2023, Honor's R&D Spending Accounted for 11.5% of Its Revenue, Zhao Ming Claims It's Li

Fri, Mar 01 2024 12:02 AM EST

On February 26th, news emerged that building a flagship smartphone that leads in hardware, technology, quality, and user experience cannot be achieved without significant R&D investments from smartphone manufacturers.

The exact amount that should be invested in smartphone R&D has always been a contentious issue.

Recently, at the MWC 2024 in Barcelona, Honor officially introduced several new products to the international market, including the Honor Magic V2 RSR Porsche design and the Honor Magic6 Pro, among others. s_694de6871bd04139b3733e0c0088f07e.png After the conference, Honor CEO Zhao Ming participated in a media interview, during which he addressed the issue of Honor's research and development (R&D) investment.

Zhao Ming stated that in 2023, based on the final financial statements, Honor's actual R&D investment accounted for 11.5% of the company's revenue, making it the highest among all smartphone manufacturers.

"However, I must apologize to the Marketing team in the market. Our investment in Marketing is significantly lower than this percentage, extremely limited," said Zhao Ming.

According to Zhao Ming's explanation, Honor will increase its investment in branding and retail. In 2024, there will be a focus on expanding the retail system in the Chinese market, particularly in the construction of experience stores. The goal is to enhance coverage in core cities and major urban areas for consumer engagement.

Simultaneously, there will be an increase in some brand and marketing investments. However, Zhao Ming also admitted, "We are not particularly skilled in marketing."

It is worth noting that in Honor's latest flagship Magic6 series, the devices are equipped with the self-developed RF enhancement chip C1+.

According to official tests, in scenarios such as high-speed trains in Beijing and Shanghai, as well as subway scenes like Beijing's Line 10, the performance of the Honor Magic6 series far surpasses that of the iPhone 15 Pro Max.

In addition, the Honor Magic6 series also debuts Hongyan Communication, supporting bidirectional satellite communication.