After multiple reports of Huawei planning to sell its Honor smartphone business unit, the company has finally confirmed that it wasn’t just a rumour. It has confirmed that it’s selling its Honor smartphone business to a “consortium of agents and dealers” at an unspecified figure.
The deal has already been sealed, and the consortium of over 30 agents and dealers have announced the news. The purchase will be made via a newly formed company called Shenzhen Zhixin New Information Technology.
The sale will ensure the Honor smartphone business continues running, although Huawei won’t hold any stake.
“This move has been made by Honor’s industry chain to ensure its own survival,” the company said in a statement.
The Chinese tech company attributes the forceful sale of its Honor smartphone business to “tremendous pressure” occasioned by the “persistent unavailability of technical elements” required for running the business.
Since the US allegations claiming the company could be used by the Chinese government to spy on American citizens, Huawei’s overall business has come under fire. The company has denied this allegation uncountable times.
Huawei’s smartphone and telco business have received direct pressure. As a result, the company was forced to wind up, making its high-end Kirin chips.
The sale of Honor is also part of the company’s strategy to focus on making high-end phones. The Honor was a unit operated independently and only made budget phones.
Recently, Huawei’s smartphone business has received a fresh breath of life after the US government allowed Qualcomm to supply them with 4G chips.
However, Huawei has previously been reported planning to make its chips – but it would take time to use them on its smartphones.
Follow us on Telegram, Twitter, Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates.