Huawei is Considering Honor Brand Sale
According to media reports, Huawei opened talks with several companies regarding a sale of assets related to its youth-focused device range Honor. The Chinese company is considering sale of the brand itself, R&D facilities and supply chain management all potentially on the block.
According to media sources, existing Honor distributor Digital China Group is among the players in talks about buying the assets, with rival suitors potentially including fellow device makers Xiaomi and one of TCL Communication’s group of businesses. Depending on the make-up of the final deal, it could be worth between CNY15 billion ($2.2 billion) and CNY25 billion.
If Honor gets new owner, it would also likely fall outside of a ban on sourcing some components currently being imposed on Huawei by the US. But, if another Chinese company was the buyer it could still find itself caught-up in the ongoing technology trade war. Honor devices are sold in China and across a range of international markets, aimed at a youthful demographic and budget-conscious consumers. In addition to smartphones, the company sells a range of electronics including TVs, ear buds and toothbrushes.