Huawei sells Honor smartphone brand for its survival

Huawei sells Honor smartphone brand for its survival
Chinese tech giant Huawei has decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Technology Co., Ltd in a bid to rescue the struggling business due to sanctions imposed by the US.

A statement issued by the firm said, “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”.

The move will help Honor's channel sellers and suppliers make it through this difficult time. It said

“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,”.

Explaining the reason, Huawei said that it is selling its Honor smartphone brand to ensure its own survival.

“Over 30 agents and dealers of the Honor brand first proposed this acquisition,” read the statement.

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,” it concluded.