Huawei Sells Honor Sub-brand

Recent rumors have suggested the sale of the Honor sub-brand by Huawei. Today, reports have been confirmed.

Honor, the company offering smartphones with a good price/quality ratio, has been sold. The transaction was confirmed today, under which Huawei's sub-brand (all employees, R&D and resources departments) will be sold to the newly formed Shenzhen Zhixin New Information Technology consortium. It consists of more than 30 different entities, including Digital China, a distributor of Honor's devices for the Chinese market, and the Shenzhen local authorities. The value of the transaction is not known. Rumors mention a figure in the range of 4 to 20 billion dollars.

How much was Honor worth these days, remains unknown

The decision to sell the sub-brand, which accounted for as much as 26% of all Huawei smartphones sales, is a result of restrictions imposed by the US authorities on the Chinese corporation. They prevent the Chinese from using Google or Qualcomm solutions, which means that they have to use original components and software. In the face of this situation, it turned out that the supply line would not be efficient enough to meet the needs of both top and budget models of the manufacturer. The only question that remains is whether, despite gaining independence from Huawei, Honor will still be subject to restrictions.

Will the American authorities take a closer look at Honor as well?

And now some good news - the new owners promise that the direction of development remains unchanged and ensure that the sale was necessary for the continued, independent functioning of the brand. In the coming months it will also become clear whether the new-old tycoon will be able to use the technologies of American companies and whether it will continue to operate on the European and American markets.