Honor Magic 5 series arrived in China market on March 6th, 2023. Analysts from TechInsights joined the launch event in Shanghai.
We are impressed by the new Honor Magic 5 series and by the launch event. The industry-leading imaging capability, the self-developed RF enhancement chipset, and the industry’s first silicon-carbon battery (5100mAh) are the most impressive highlights of new products. The domestic pricing of new Honor Magic 5 series is arguably a positive surprise from the launch event.
The starting retail prices of Magic 5 and Magic 5 Pro in China are RMB 3999 (~USD 577) and RMB 5199 (~USD 750) respectively, which are about 40% lower than their overseas price unveiled roughly a week ago in MWC Barcelona 2023. The pricing difference resonates the different positioning of the Magic 5 series in domestic and overseas markets.
In domestic market, Magic 5 series trades price for volume. The goal is to help Honor to gain more shares in premium market, and its targeted audience are the existing users of Huawei’s P series and Mate series. After over two years of efforts, Honor has established itself as the top tier vendors in domestic market in terms of volume shipments. How to gain more shares in premium segment and how to lift its brand and its portfolios are the next challenges for Honor. The Magic 5 series is the current answer from the vendor.
In overseas markets, Magic 5 series targets to be viewed by local consumers as a valid alternative / competitor for Samsung’s flagship models. The aim is to create halo effect and to help the shipments of its mass-market-oriented Number series and X series. For Honor, its overseas expansion remains in the early stages, and its volume contribution to its total shipments is under 15%. As for Honor’s overseas markets, scale improvement is more important and urgent than brand lift-up. (In addition, the pricing of the Magic 5 series also takes the consideration of the interests of European distributors and the higher costs of Honor in those markets.)
Compared with the previous generations, new Magic 5 series has significant improvements in hardware innovation. Compared with the available products in the same price range, its performance in battery life, cellular connectivity, and imaging can be viewed as outstanding. Taking into the consideration of its pricing, we are optimistic about the shipment performance of Magic 5 series in the domestic market and expect it will outsell its predecessors.
