In the past week, there have been rumors of Huawei reportedly selling its Honor sub-brand to a Chinese consortium, though the smartphone giant never confirmed anything on this front. The deal is now official and there’s more details on Huawei selling its Honor sub-brand.
The company is selling its Honor sub-brand to a consortium comprising of over 30 agents and dealers, with Huawei itself not retaining any shares in Honor after the sale. The consortium of buyers will be setting up a new company, Shenzhen Zhixin New Information Technology, for the purchase.
The statement from Huawei is that the sale of Honor sub-brand is a ‘market-driven investment made to save’ its industry chain. The deal does not have any impact on the company’s product development cycle. it says.
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There’s no word on the value of the deal and its other terms and conditions; but it will see all 7,000 Honor employees; R&D; and supply chain management being handed over to the new company being founded by the consortium.
Huawei’s smartphone business has come under immense pressure in the last year or so; due to the US trade ban. First, the US government placed an export ban on Huawei that led to its Android license being revoked; and this year, it amended the rules to strategically block Huawei’s access to key smartphone components.
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