Huawei sold Honor
News - Nov 20, 2020
China’s Huawei, disturbed by the long US campaign against the company, decided to streamline activities for the purpose of business sustainability and to sell its Honor smartphone business.
A consortium of buyers announced that they bought Huawei’s Honor, without revealing the transaction amount, the CNN Biznis reports.
The buyers include more than 30 Chinese agents and dealers of this smartphone brand.
Huawei and the group of buyers announced that they concluded the SPA in order to help save Honor’s supply chain and protect consumers and vendors.
Trump’s administration banned the Chinese company from access to vital technology, such as chips, smartphone software and 5G telecoms equipment. Washington claims that Huawei represents a threat for national security, while Huawei has for long been firmly rejecting such accusations.
– The sale of Honor means that the company from Shenzhen will now be able to free its resources in order to focus on its own smartphone brand – says Nicole Peng, an analyst of Canalys, a market research firm.
Huawei will not own shares or be involved in any business or decision-making activities in the new Honor, as stated in a press release.
According to the CNN, the US sanctions against Huawei may be mitigated when the newly elected president Joe Biden takes over his duty, but for now there are no guarantees that his administration will do that.
Huawei’s flagship smartphone brands, such as the P and Mate series, cost cca 4,500 yuan (683 dollars) and 6,400 yuan (972 dollars), respectively.
Honor’s phones are much cheaper. The price of the latest 10X series is cca 2,100 yuan (319 dollars), whereas cheaper Play phones cost only 1,200 yuan (183 dollars).