Huawei has sold its Honor smartphone brand

Last week, a report claimed that Huawei had finalized a buyer for Honor’s smartphone business. today, Reuters It is reported that Huawei has agreed to sell to Honor, a smartphone brand under the Huawei Consumer Business Group, to a consortium of more than 30 agents and dealers. The buyers announced that they were setting up a new company called Shenzhen Xixin New Information Technology to complete the purchase.

Once the sale is complete, Huawei will no longer hold any stake in the new Honor brand. The deal will cover everything from R&D capabilities, supply chain management, and other honor assets. Honor’s workforce consists of over 7,000 employees.

A joint statement shared by the Chinese newspaper Shenzhen Special Area Daily, On behalf of more than 40 companies involved in the transaction, said the sale was “a market-driven investment to save Honor’s industry chain.” After the change of ownership, Honor will continue as usual, with no effect on production.

Ever since Huawei has been placed on the “Entity List” of the US Department of Commerce, the company has found it difficult to operate its consumer hardware business. The company has adapted to this as well, but it faces tough challenges due to increasing restrictions by the US, for example, because the US effectively blocked many chipmakers from supplying to Huawei. Having done so, the company will be unable to be its ARM-based. SoC Design manufactured by contract chipmakers such as TSMC. As such, the Kirin 9000, found in the Huawei Mate 40 series, is expected to be Huawei’s last self-designed high-end Kirin silicon, and the company will have to turn to 4G chipsets from competitors such as Qualcomm or, hopefully, China’s semiconductor manufacture. Industry can come forward.

If Huawei tries to be completely independent of US-based companies, it will require a lot of cash to do so. The deal to sell Honor could be the cash infusion that Huawei needed for this effort. No data on the transaction was revealed, but a previous report claimed it was in the region of $ 15.2 billion. The previous report also claimed that the consortium’s goal would be to make the company public within three years after purchasing Honor.

With sales now complete, Huawei reportedly will focus on high-end smartphones and continuing its corporate-oriented business. Honor, meanwhile, will continue to cater to the worldwide mid-range market.

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