Huawei today announced the sale of its Honor smartphone brand. According to the Chinese manufacturer, this decision was “made by Honor’s industrial chain in order to ensure its own survival”.
Huawei sold Honor to a consortium of 40 Chinese companies made up of distributors, agents, and other companies whose survival depends on that of the brand. The Chinese group adds that the manufacture of devices for the general public is “under terrible pressure”. This is an indication of the US restrictions preventing US companies from doing business. Due to this blockade, Huawei does not receive enough components.
“The sale will help honor vendors and suppliers get through this difficult time,” Huawei said in its statement. According to Huawei, Honor sells 70 million smartphones annually.
With this sale, Huawei no longer has any shares. The manufacturer is no longer involved in the management or decision-making for the new company Honor, he said.
Huawei does not share the amount of the sale for Honor. However, according to the latest information from Reuters, the talks with the Corsotium totaled 100,000 billion yuan.