HONOR announces ALPHA PLAN strategy to fuel open, AI-driven device ecosystems

In its keynote ahead of MWC 2025, HONOR unveiled the ALPHA PLAN to showcase its ambitions, strategic direction, and investment focus in the consumer device industry, which is undergoing a paradigm shift by transformative technology such as AI. Through the ALPHA PLAN, HONOR has committed to invest US$10 billion over the next five years, with the focus on elevating its device ecosystem user experience and capability through agentic AI, and building a common framework of AI collaboration and driving partnerships within the consumer industry.

What are the three key elements in the ALPHA PLAN?

1. Reinvent the smartphone experience through different AI capabilities: Over the past few years, HONOR has emphasized its proprietary AI Agent development. The new ALPHA PLAN extends this capability to a more sharpened, achievable near-term objective – to vastly improve its core product, the smartphone’s user experience, through a series of AI-powered features such as the HONOR AI Agent and HONOR Share. Smartphones will then act as a link to bring together other smart devices such as PCs, tablets, wearables and hearables in its own ecosystem.
2. Build an industry-wide collaboration framework to drive AI partnerships: The key message in this strategy, to become a “leading AI device ecosystem company,” signals the role HONOR hopes to play in this massive consumer ecosystem in the AI era, under the new CEO James Li’s direction. The emphasis on ecosystem and partnerships in this strategy means the company is moving away from being a full-stack player controlling most AI capabilities, such as models and key hardware technologies and infrastructure.
3. Empower consumers in the digital world and physical world: the last stage of the plan outlines HONOR’s long-term vision for the company and the purpose it wants to achieve. It connects back to HONOR’s vision statement, which is focused on empowering anyone with an intelligent device ecosystem.

What does it mean for HONOR’s device strategy this year?

The ALPHA PLAN gives a renewed focus for HONOR’s AI investments in a critical year of on-device AI development, affirming its ambitions, directions, and commitment to key partners, including operators and supply chain partners. According to Canalys (now part of Omdia), HONOR was the fifth largest AI-capable Android smartphone vendor globally in 2024, with the second-highest ASP (average selling price) behind Samsung. HONOR has demonstrated its thought leadership in product development around AI, an example being the intent based UI and Magic Portal, and being the first Android vendor to integrate DeepSeek into its flagship smartphones (although only in mainland China for now). Furthermore, HONOR has prioritized its Magic and Number series in marketing and sales to focus on the segments with substantial value.

In 2025, as part of stage one of the ALPHA PLAN, we expect HONOR to double down on building AI-enabled features, but with more focus on AI agent capabilities, connectivity, and security such as AI Deepfake Detection on smartphones. Meanwhile, HONOR will continue to launch more ecosystem devices to build a more comprehensive hardware platform and user reach in both domestic and overseas markets as part of its vision.

However, there are short- and medium-term challenges to realizing the ambitious ALPHA PLAN at the execution level. Translating industry-leading innovation into consumer AI use cases that users are willing to pay for is no easy task on smartphones and PCs, not to mention other smart devices such as smartwatches and tablets. HONOR must be able to demonstrate its device ecosystem's combined unique value proposition, which has to come from enhanced products and data capabilities supported by AI. This also comes down to the capability to build partnerships with all AI ecosystem players. The “open” strategy will bring a lot of advantages and potential, but HONOR will also face a highly fragmented ecosystem across the globe with different regional players of all sizes. HONOR should focus on a few regional markets, such as China, where it can make some early wins with a proven collaboration framework.

With continued investment and commitment to bringing impactful AI experiences to consumers, HONOR has an exciting roadmap ahead. The ALPHA PLAN represents a positive step forward in HONOR's device strategy and long-term vision.