Huawei is reportedly in talks to sell part of its Honor smartphone business amid the US ban. According to the report, the Chinese technology company is currently negotiating with Digital China Group Co Ltd, among other potential buyers interested in its Honor smartphone business.
Digital China Group Co Ltd is the frontrunner because its Huawei’s main distributor of Honor branded phones. Other interested buyers include Xiaomi and TCL, both Chinese-born companies with a presence in the smartphone business.
This deal alone could see Huawei receive up to 25 billion yuan, or about $3.7 billion, according to Reuters, citing sources familiar with the matter.
The company is looking to offloading different arms of the Honor brand. According to two sources, it could sell Honor’s brand, research & development capabilities, and related supply chain management business.
Huawei is reportedly shifting its focus on making high-end smartphones under the Huawei brand, which is interesting. The company stopped producing in-house high-end Kirin powered chipsets last month due to US sanctions imposed in May.
These shifting priorities mean that the company won’t make Honor branded phones anymore, which are usually targeted at young, budget conscious consumers.
The honor was established in 2013 and, like its parent company, has a portfolio of wearables, laptops, TVs, and fitness devices.