Telecom giant Huawei has announced that it will sell its cheaper smartphone brand Honor. With this, the Chinese company hopes to save the brand, which is still severely affected by US trade sanctions.
Huawei acknowledges in a press release that its consumer business is under severe pressure due to the significantly reduced availability of components for its smartphone division.
The Chinese company is suffering from sanctions imposed by the Trump administration following allegations of espionage. Huawei has always denied those accusations.
Due to the sanctions, the group can no longer purchase American chips or other technology, and it is also no longer allowed to pre-install Google services or apps on its devices. That’s a big deal for Honor’s smartphones.
The decision to sell the branch should enable Honor to survive; it sounds. Huawei will no longer have any stake in the company nor be involved in management.
The purchaser of Honor will be Shenzhen Zhixin New Information Technology, a public company based in the city of Shenzen in southern China. Financial details were not disclosed.