Huawei is selling off its Honor phone business. Huawei has announced plans to market Honor, its mid-range smartphone business, to younger customers. “Huawei says the decision has been taken by the industry chain of Honor to ensure its own survival,” following “massive pressure” and a persistent lack of technological elements required for our cell phone business.
Huawei is selling off its Honor phone business
Honor goods often rely heavily on Huawei’s own technology, so the company was similarly affected by US sanctions that prohibited Huawei from doing business with American businesses. For instance, the V30 line of phones utilizes the same Kirin 990 processor that powers the P40 flagship devices of Huawei. Honor should have more freedom to grow its products under new ownership, eventually being able to negotiate with Qualcomm and Google like it.
Huawei says it will not own any stock in the new Honor company or be involved in any business management or decision-making activities.” The newly established Shenzhen Zhixin New Information Technology Co., a group of partners and government-backed firms, will own the company.
Contract terms have not been disclosed. Earlier this month, Reuters reported that a proposed sale of Honor could hit 100 billion yuan ($15.2 billion).