Core Viewpoint - Honor's overseas smartphone shipments have seen a significant increase, with a year-on-year growth of approximately 55% in the first three quarters of 2025, indicating a strong contribution from international markets to its overall business [2]. Group 1: Overseas Market Position - Honor's international business has undergone a structural transformation over the past five years, with overseas shipments rising from less than 10% of total shipments in early 2021 to nearly 50% by Q3 2025, marking a strategic turning point for the company [2]. - Evaluating Honor's overseas performance solely based on shipment growth is insufficient; a deeper analysis of regional contributions, product pricing strategies, and go-to-market execution is necessary to assess the sustainability and structural health of its international expansion [2]. Group 2: Focus on Mid-High-End Market - Honor has positioned the mid-high-end price segment as its core strategic direction in overseas markets, focusing resources on the $300–499 price range, which accounted for approximately 23% of its overseas shipments in the first three quarters of 2025, the highest among major Chinese brands [5]. - The success in this price segment is attributed to a synergistic strategy involving channels, products, and marketing, including deepening partnerships with brand stores and key KA partners, aligning product planning with local consumer needs, and enhancing AI functionality through in-store demonstrations [5]. Group 3: Regional Strategy for Overseas Expansion - Honor's overseas business has developed a clear, layered regional strategy, with different regions playing differentiated roles within the overall overseas strategy [7]. - In Latin America, Honor's focus on operator-led channels aligns well with its market entry capabilities, with Mexico and Central America being core markets while Ecuador and smaller markets like the Caribbean are emerging as additional sources of growth [11]. - Europe serves as a critical support for Honor's high-end strategy, maintaining a top-five market position in key Western European markets, while also increasing channel investments in Central and Eastern Europe [12]. - The Middle East has become a major source of incremental growth, with a focus on mid-high-end channels and systematic market execution [15]. - Southeast Asia is emerging as the next growth engine, with local manufacturing and channel development being prioritized to enhance supply stability and meet compliance requirements [19]. Group 4: Challenges and Opportunities for Sustainable Growth - Honor faces challenges in maintaining growth momentum amid a complex operating environment, including rising NAND and DRAM prices affecting cost and supply stability [20]. - The company aims to convert its expanding overseas user base into sustainable service revenue, transitioning AI from a functional selling point to a long-term value source [20]. - Future growth potential lies in penetrating under-served emerging markets and leveraging established mid-high-end foundations in Europe and the Middle East to enhance user value through AI-related services [21].