 |
| Huawei officially sells the Honor brand |
Huawei announced, Tuesday, that the company is selling the smart phone division of its popular brand to a consortium of more than 30 agents and distributors in order to maintain its vitality.
The deal came after the US government imposed purchase sanctions on Chinese companies because Chinese companies pose a threat to national security.
The association issued a statement Tuesday announcing the acquisition of the new Shenzhen Zhixin New Information Technology Company. And the statement said: After the sale, Huawei will not own any shares in New Honor.
Huawei said in a statement: `` Due to the lack of technical elements required to make the phone, our core business has come under tremendous pressure. Honor industrial chain has taken this step. Ensuring brand survival and changes in ownership do not affect the direction of honor development. .
A source familiar with the matter said: The restrictions imposed by the US government have forced the second largest smartphone maker in the world (after Samsung in South Korea) to focus on advanced mobile phones and business-oriented companies.
A source said Tuesday: After the US government leaves Huawei, there will be no reason to punish the honor.
Honor sells smartphones through Chinese websites and outside retailers, and is competing with Xiaomi, OPPO and Vivo in the low-cost cellular market.
According to a statement from Huawei, the company also sells mobile phones in Southeast Asia and Europe, and ships 70 million units annually.
Honor will be looking for more investment partners in the future.
Reuters reported earlier this month that Huawei was in talks to sell Honor to a consortium led by retail mobile phone maker Digital China, worth 100 billion yuan ($ 15.2 billion).
Source said: Digital China is not part of the Ultimate Buying Group.
Honor products are generally based on Huawei technology. As a result, the company faces US sanctions that prevent Huawei from doing business with US companies.
With a new owner, Honor should have more flexibility in developing its products and potentially be able to do business with companies like Qualcomm and Google.