Huawei has sold its Honor smartphone business to a consortium of over 30 agents and dealers. The official announcement came after recent reports that claimed Huawei will be spinning off its sub-brand. After the acquisition, Huawei will not hold any shares of the Honor brand.
The buyers are setting a new firm that is named Shenzhen Zhixin New Information Technology. The deal brings full acquisition over Honor’s assets, research and development wing, supply chain resources, and others. Honor has over 7,000 employees. The existing employees including the senior management will now be part of the new company.
After the acquisition, the Honor brand will continue to exist as usual. The companies involved in the deal have claimed that the decision to sell the brand is a market-driven investment to save Honor’s industry chain. The joint statement released by the consortium states that the acquisition is the best solution to protect the interests of consumers, channel sellers, suppliers, partners, and employees.
All the shareholders will work at the development of the Honor brand so that it can completely effectively with other brands in the market. The change in ownership will not impact the functioning of the company.
The revision in the U.S. trade ban made it difficult for Huawei to carry out its consumer hardware business as usual. For instance, it is unable to power its phones with Kirin chipsets, since they are manufactured by TSMC using equipment from the U.S. The ban has caused Huawei and Honor phones to ship without the Google suite of apps. Such situations have impacted the sales of Huawei and Honor smartphones across the world.
