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Huawei To Sell HONOR Division To Shenzhen Government For US$15.2 Billion

by John Law
November 10, 2020
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Huawei is planning on selling HONOR, its sister smartphone brand, to a Shenzhen-based consortium by the name of Digital China. According to Reuters, the Chinese telecommunications and smartphone brand is prepared to let go of the mid-range and budget-friendly brand to the tune of US$15.2 billion (~RM63 billion).

The transaction of HONOR’s sale to Digital China is said to be an all-cash sale and includes the brand, research and development capabilities, as well as its supply chain management. On a related note, Huawei’s choice of Digital China could also be a strategic one; the company is said to be a long-time partner of Huawei in businesses such as cloud computing.

The brand’s decision supposedly comes in light of several sanctions and trade restrictions – brought about by the departing Trump administration – as well as its decision to focus on making high-end smartphones and corporate-oriented business.

Huawei AppGallery

It’s no secret that, due to its obvious and direct relationship to Huawei, HONOR has also received the brunt of the US sanctions and was indirectly affected by the latter’s ban of Google Mobile Services (GMS) on Huawei devices.

At the time of writing, HONOR had yet to comment on Huawei’s sale plan.

(Source: Reuters)

Filed Under honorHuawei
Updated 5:36 pm, Tue, 10 November 20
http://lowy.at/Cu3fH
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