Huawei officially sells off Honor sub-brand
Huawei has finally made an important announcement. The top Chinese mobile OEM has been changing its business strategy as the US trade ban takes effect. It’s been over a year since American firms have started to cut ties with Huawei as per the US government’s requirement. We have shared with you news of Huawei losing several major partners not only in the country but overseas. Brands are now required to get a license from the US if they want to continue to do business with Huawei. A few weeks ago, we heard about the possibility of Huawei selling off the Honor unit. D-Day has arrived and the company has posted a serious statement.
The consumer business of Huawei will lose the Honor business. All assets are being sold off to Shenzhen Zhixin New Information Technology Co., Ltd. Honor will continue in the business, at least, for now, as the sale will benefit Honor’s suppliers and channel sellers.
Honor has been around for seven years. Huawei has shared it ships over 70 million budget to mid-range phones each year. Huawei has thanked everyone who has supported the Honor brand from the partners to suppliers to employees, channel sellers, and of course, consumers.
Huawei said it will no longer be involved in any business with Honor. It will not hold any shares at all. Huawei will not take part in any decision-making activity. This is being done to ensure the survival of Honor as proposed by the brand’s dealers and more than 30 agents.
Read the full statement below:
Huawei’s consumer business has been under tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone business. Huawei Investment & Holding Co., Ltd. has thus decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Technology Co., Ltd. This sale will help Honor’s channel sellers and suppliers make it through this difficult time.
Once the sale is complete, Huawei will not hold any shares or be involved in any business management or decision-making activities in the new Honor company.
This move has been made by Honor’s industry chain to ensure its own survival. Over 30 agents and dealers of the Honor brand first proposed this acquisition.
Since its creation in 2013, the Honor brand has focused on the youth market by offering phones in the low- to mid-end price range. During these past seven years, Honor has developed into a smartphone brand that ships over 70 million units annually.
Huawei highly appreciates the continued dedication, attention, and support given by Honor’s consumers, channel sellers, suppliers, partners, and employees.
We hope this new Honor company will embark on a new road of honor with its shareholders, partners, and employees. We look forward to seeing Honor continue to create value for consumers and build a new intelligent world for young people.
