HONOR Becomes Second-Largest Smartphone Vendor in Middle East as Market Contracts

HONOR has moved into the position of the second-largest smartphone vendor in the Middle East, recording strong growth despite a broader contraction in regional smartphone shipments during the first half of 2026.

According to data from Omdia, the Middle East smartphone market declined 13% year on year in H1 2026, while HONOR's shipments increased by 35%. The company had already recorded 73% growth in the first quarter, according to the figures cited by HONOR.

The performance marks a significant shift for the Chinese technology company as it expands beyond its smartphone business towards a broader AI-powered device ecosystem.

Mid-to-high-end segment drives HONOR growth

HONOR's strongest performance came from the $300–$500 price segment, where the company captured a 24% share in Q1 2026, representing 130% year-on-year growth.

The company attributed part of its regional performance to products including the HONOR X9d, which focuses on durability and battery performance.

The device became one of the company's top sellers in Saudi Arabia and the UAE, while the HONOR 600 Series recorded double-digit growth in the accessible flagship segment.

UAE emerges as key premium market

The UAE has become an important market for HONOR's premium and ecosystem strategy.

The company has expanded its physical retail presence through a series of experience stores, beginning with its first UAE Experience Store at Dubai Festival City Mall.

This was followed by an authorised experience store and service centre in Abu Dhabi, another location at Al Reem Mall, and a store at BurJuman in Dubai, which opened in January 2026.

The retail strategy extends beyond smartphones, with HONOR showcasing laptops, tablets, wearables and other connected devices.

The company sees the UAE's relatively high consumer purchasing power and established premium retail environment as an opportunity to increase engagement with its wider device ecosystem.

HONOR shifts focus towards AI ecosystem

HONOR is also repositioning itself from a smartphone manufacturer to an AI device ecosystem company under its ALPHA PLAN strategy.

The roadmap moves from what the company describes as an intelligent phone to an intelligent ecosystem, and ultimately to an “intelligent world”.

One of its most prominent concepts is the Robot Phone, which combines on-device artificial intelligence with a robotic gimbal designed to move, track subjects and respond to its surroundings.

HONOR has also worked with cinema technology company ARRI on the device's imaging technology.

The company's wider roadmap includes AI glasses, robotics and PCs, signalling an expansion beyond smartphones.

AI strategy targets next phase of growth

HONOR's strategy is based on the view that AI capabilities are increasingly becoming standardised at the software level, making hardware performance an important area of differentiation.

The company is focusing on areas such as battery capacity, thermal management and durability as it develops devices designed to support increasingly demanding AI applications.

These capabilities could be particularly relevant in markets such as the Middle East, where high temperatures and dust are common operating conditions for consumer electronics.

HONOR expands beyond smartphones

HONOR's latest regional performance comes as the company expands its retail network, device portfolio and AI strategy across the Middle East and Africa.

The company is increasingly positioning its growth around a broader ecosystem of connected devices rather than smartphones alone.

With its market share rising while overall regional smartphone shipments decline, HONOR's next phase will centre on extending its momentum across premium devices, AI products and connected technologies.