Huawei Confirms Honor Sale
Huawei will sell all its Honor business assets to a domestic consortium Shenzhen Zhixin New Information Technology Co. That way, the Chinese vendor moves to avoid toughened trade sanctions from the US.
Huawei said in a statement that its consumer business has been under tremendous pressure due to a persistent unavailability of technical elements needed for their mobile phone business. It said the sale to Shenzhen Zhixin New Information Technology Co would help Honor’s channel sellers and suppliers make it through this difficult time.
“This move has been made by Honor’s industry chain to ensure its own survival. Over 30 agents and dealers of the Honor brand first proposed this acquisition,” Huawei said in a statement. After the sale, Huawei won’t hold any shares or be involved in the management of the new company. Since its creation in 2013, the youth-focused Honor brand marketed handsets in the low- to mid-tier price range and shipped more than 70 million units annually.