Chinese smartphone brand Honor launched what promises to be the world’s thinnest foldable phone—just 4.1 millimeters thick when unfolded—on Wednesday as it seeks to regain lost ground in China’s competitive phone market.
The Magic V5’s thinness is made possible by innovations in its silicon-carbon battery, which stacks cells just 0.2 millimeters thick to create a battery that’s as thin as a bank card. The new phone is also light: At just 217 grams, the Magic V5 weighs less than the iPhone 16 Pro Max.
Behind these innovations is a “massive” amount of research and development, Hope Cao, Honor’s product expert on foldables, told Fortune ahead of the Magic V5 launch.
Honor invested 1 billion Chinese yuan ($139 million) towards researching its silicon-carbon battery technology. The company invests over 10% of its total revenue towards R&D each year.
“In terms of materials, structure, craftsmanship…everything is extremely costly from an R&D perspective,” Cao said.
Cao suggests this aligns with Chinese consumer preference for versatile devices for both work and entertainment. A larger screen means more space for productivity apps, meaning users can do their work on a foldable smartphone rather than a laptop. The rise of “short dramas”—soap operas designed to be watched on a phone and easily shared on social media—are also pushing shoppers to invest in larger displays.
China’s budget brands are now venturing into the premium market, seeking growth from selling higher-value phones, rather than a larger volume of cheaper models.
Still, the return of Huawei to the smartphone market in 2023 is weighing on Honor’s business. Counterpoint Research puts Huawei in first place in China’s smartphone market, alongside Xiaomi.
