Huawei To Sell Its Honor Brand Officially
The Chinese telecommunications supplier Huawei will sell its smartphone brand Honor. The company has now presented an official exit plan. The move is intended to secure the future of the rest of the group somewhat better.
As reported earlier that Huawei now focuses on Honor Sales in order to get out of the crisis made by the US embargo.
In its now published official announcement on the upcoming sale of the division, Huawei clearly stated that it was only forced to take this step because of the “extraordinary pressure” and the “continued unavailability of technical components that are required for our mobile communications business”.
The conclusion is now on the table: The decision to sell was “made by Honor’s industry branch to ensure its own survival,” it said. So it was not only the Huawei management that initiated the planning. However, Honor will be formally separated from Huawei, but will not be sold to another smartphone manufacturer.
Newly founded mother
Instead, Honor will in the future be operated by the holding company Shenzhen Zhixin New Information Technology. This is a completely newly founded company, behind which some previous partners and state-sponsored companies are. Huawei itself should no longer hold any shares in the company and no longer have any influence on decision-making.
The future will show how far the separation will also be evident in the products. Because of course the Honor smartphones have so far also been shaped by the components that Huawei develops and produces itself. These include, for example, the Kirin SoCs, which are used in several models. The financial volume of the sale has not been quantified more precisely. The US news agency Reuters, however, had estimated the value of the subsidiary at around $15 billion.
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