Huawei Officially Sells Its Honor Smartphone Brand to Ensure Longevity of Its Business

Following the rumors talking nigh the auction of the Honor smartphone brand, Huawei has officially made the confirmation through a press release. The Chinese tech giant states that due to a considerable amount of pressure, it had to decide that would ensure the survival of its main make. Honor and its related assets will eventually become a function of Shenzhen Zhixin New Information technology.

Huawei Doesn't Mention the Rumored Auction Price of $15 Billion

Given below is Huawei's official statement on the auction of Honor.

"Huawei'southward consumer business organization has been nether tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone concern. Huawei Investment & Holding Co., Ltd. has thus decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Engineering Co., Ltd. This auction will help Honor's aqueduct sellers and suppliers make it through this difficult fourth dimension.

Once the sale is complete, Huawei will non hold any shares or be involved in whatever business management or conclusion-making activities in the new Laurels visitor.

This move has been fabricated by Honor'south manufacture chain to ensure its ain survival. Over thirty agents and dealers of the Honor brand starting time proposed this acquisition."

According to the company, the Award brand ships seventy million smartphones annually. Huawei volition no longer exist a function of any business activity, management, or concur any ownership in this brand. For an entity as massive every bit Huawei, its troubles started with Google suspending business with the company. This means Huawei would no longer install Android on its devices, but this was just the start.

The company is now unable to develop loftier-terminate Kirin chipsets because TSMC can no longer provide it with chips due to the U.S. sanctions. Though Qualcomm might exist able to help in some chapters, information technology might not be enough for quite a while. Huawei continues to believe in its HarmonyOS 2.0 platform, which will start actualization in the company's handsets shortly. To ensure its smartphone arm'due south survival, there'due south no other choice, really, unless the U.S. decides to relax the ban slightly and permit Huawei'due south partners to once more resume business organization with information technology.

Exercise you think selling off the Honor brand was a prudent decision? Tell us down in the comments.

News Source: Huawei