Honor’s AI-Powered Phone Finds Discounts, Raising Pressure on Apple

Imagine a phone that hunts for discounts every time you shop, not through an app, but through the device itself.

That’s the idea behind Honor’s new Magic8 series, unveiled Wednesday (Oct. 15), which uses artificial intelligence (AI) to automatically search for lower prices and apply coupons across China’s biggest eCommerce platforms. It’s part of the smartphone maker’s latest bid to turn AI from a background feature into a real-world benefit, and it comes as Apple faces growing pressure to prove its own devices can do more than talk about intelligence.

According to CNBC, the Magic8’s built-in “Yoyo” assistant allows users to say or type prompts like “find best deal” or “available coupon.” The AI then scans platforms such as JD.com and Taobao, compares prices in real time, and surfaces the top savings. Honor says early users have saved up to 20% on select purchases. The system runs entirely on the device using what Honor calls a “Model Context Protocol,” developed with AI firm Anthropic, to keep user data private.

“Honor expects people will turn more to AI assistants rather than smartphone apps directly,” Fei Fang, president of products at Honor Device, told CNBC in an exclusive interview.

The company launched the phone weeks before Singles Day, China’s largest shopping event, to showcase how AI can make online shopping faster and more personalized. It also partnered with Alibaba to integrate the new tools into Taobao and Tmall, embedding its AI deeper into China’s retail infrastructure.

Honor holds about 13% of China’s smartphone market compared with Apple’s 15%, according to Counterpoint Research, cited by CNBC. Since its 2020 spinoff from Huawei, Honor has been positioning itself as a tech-forward challenger by targeting younger, value-focused consumers who expect smartphones to deliver tangible utility, not just hardware upgrades.

The contrast with Apple is becoming sharper. As PYMNTS reported, Apple is exploring an acquisition of Prompt AI to accelerate its technical capabilities. Even as the iPhone 17 achieved strong opening-day sales, Apple still trails Google, whose Pixel line already embeds generative AI in search, translation and image tools. Apple is also developing a tabletop robot and lifelike Siri assistant to narrow that gap.

With the Magic8, Honor joins a growing list of device makers using AI to differentiate in a crowded market. The company’s focus on embedded intelligence suggests the definition of a “smartphone” is changing. It’s latest launch highlights how AI is shifting the smartphone market toward practical utility.