The move also signifies that Honor is joining the likes of Huawei, Oppo, and Xiaomi by stepping into the foldable marketplace.

Magic V features a large 7.9-inch main folding screen that can close completely flat for added protection. It also has a 6.45-inch cover screen, similar to what consumers see on a regular smartphone. The external screen would make typing and other everyday tasks much easier, Honor said.

Zhao Ming, CEO of Honor, said in the past, foldable smartphones were seen more as an extremely innovative product from both its price and user experience.

"But this time, we are defining it as a mainstream product for everyday use," Zhao said.

Priced from 9,999 yuan ($1,569) in China, Magic V also has make big improvements in its operating system to make it more suitable for foldable smartphones, Zhao added.

A report released by market research company Counterpoint Research estimated that the shipment of foldable smartphones reached about 9 million units in 2021, a threefold growth over 2020. The consultancy expected a tenfold growth in foldable smartphone shipments in 2023.