Core Insights - Honor is transitioning from a smartphone manufacturer to a leading global AI terminal ecosystem company, showcasing its AI ecosystem layout at the first global developer conference in Shenzhen [1] Group 1: AI Ecosystem Strategy - Honor introduced the "1×3×N" ecological strategy to address the fragmentation of the AI terminal ecosystem, which includes the HONOR AI Connect platform, three empowerment models, and coverage across multiple industry clusters [2] - The HONOR AI Connect platform has successfully connected over 30 million ecological devices, establishing a solid foundation for connectivity [2] Group 2: AI Scene Solutions - Eight AI scene-based ecological solutions were launched to tackle fragmented user experiences and enhance interoperability, covering areas such as smart home, smart vehicle, health, education, and business [3] - Honor aims to create a seamless experience by integrating home, vehicle, and mobile interactions, recently partnering with BYD to develop an AI-driven smart travel ecosystem [3] Group 3: Collaboration and Innovation - Honor's chairman emphasized the synergy between policy, technology, and market forces in Shenzhen, which accelerates the evolution of terminal intelligence [4] - The company is establishing a robust industrial foundation in Shenzhen, with significant manufacturing and supply chain partnerships to support its AI terminal ecosystem [4]

Core Viewpoint - The European smartphone market experienced a 4% year-on-year growth in Q2 2025 after a sluggish Q1, driven by new model releases and promotional activities despite ongoing economic and geopolitical challenges [4][6]. Market Performance - The European smartphone market saw a 4% increase in shipments in Q2 2025 compared to the same period last year, recovering from earlier declines [4][6]. - Samsung maintained its leading position in the region, although its market share slightly decreased due to strong performances from Apple and Xiaomi with the iPhone 16e and Redmi Note 14 series [4][8]. - Honor emerged as the standout performer, achieving a remarkable 42% year-on-year growth, bolstered by its popular 400 series and Magic 7 series [6][8]. Challenges and Influences - Economic challenges and new EU eco-design regulations limited the entry of entry-level models like the Samsung Galaxy A06, contributing to subdued consumer demand [6][8]. - Despite the market recovery, the overall smartphone shipments in Europe for the first half of 2025 still saw a slight decline year-on-year due to low consumer demand and geopolitical uncertainties [8]. Regional Insights - In Q2 2025, Japan's smartphone shipments grew by 11%, marking the second consecutive quarter of double-digit growth [6]. - The Middle East and Africa saw a 3% increase in smartphone shipments, driven by 5G adoption and high-end demand [9]. - The U.S. smartphone sales rose by 9%, with strong performances from the three major carriers [9]. - Conversely, China's smartphone shipments declined by 2% due to weak demand and reduced subsidies [9]. Company Overview - Counterpoint Research specializes in technology market research, providing insights across various sectors including smartphones, semiconductors, and consumer electronics [2][10].