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Honor products no longer belong to Huawei

Honor products no longer belong to Huawei

It is confirmed now. Huawei has decided on doing away with Honor. The smartphones coming under the Honor branding brought about products that were neither too costly nor very cheap. These products were brought about, keeping in mind the likes of the younger generation. The Chinese tech organization claims that the call has been taken by none other than Honor. The latter feels that coming within the Huawei group could endanger its very chances of sustaining itself in the market. 

Of late, Huawei has been facing “tremendous pressure” owing to the ban imposed on its products in the US. Secondly, the smartphone maker is also facing the heat due to the constant non-availability of technical elements that are very much essential for running the smartphone manufacturing business. 

It is a well-known fact that many products falling within the Honor brand are very much dependent on Huawei-based technology. Hence, it would be needless to say here that America’s restrictions on products using Huawei-based technology have had a huge impact on Honor. For instance, Honor phones coming within the V30 lineup contain the Kirin 990 processor, which, ironically, is also present within Huawei’s P40 device series. 

Now, with a change in Honor’s ownership, one can expect its products to come with more flexible options and being able to match the expectations of biggies like Qualcomm and Google.

Under the Trump era, the US government had disallowed tech giants in the country to be involved in any business with Huawei, citing security issues. Following this ban, both Huawei and Honor decided against using any American companies’ components within their products. Qualcomm was dissuaded from conducting its chipsets business with Huawei, although this was called off very recently. On the other hand, Google canceled the licenses of both Huawei and Honor, which refrained them from using any Google-based apps. Owing to these developments, the businesses of both the China-based smartphone manufacturers have taken a hard hit in the west. 

Huawei has made it clear that going forward, it would no longer be involved in managing any decisions, nor would it take any decisions on behalf of Honor. Furthermore, the Chinese smartphone maker would also not hold any stakes within Honor under its new leadership. Coming to Honor’s latest ownership rights would now be owned by Shenzhen Zhixin New Information Technology Co., Ltd. This organization has been formed very recently, thanks to a group of partners and businesses that received government incentives. Around 30 or perhaps even more agents and distributors were involved in the formation of this company.

The newly formed Honor company will be handling and taking all decisions related to resourcing, brand formation, production, and distribution activities. Furthermore, it would be actively involved in making high-level decisions that work in favor of the organization. And finally, Honor would be handling the product services and operations management. 

The change in ownership would not alter or come in the way of Honor’s betterment. Rather, the top-management of the smartphone maker would be retained even under the new ownership.

For now, there is no information concerning the terms of this sale deed, except the fact that Shenzhen Zhixin New Information Technology Co., Ltd would be completely taking over Honor’s business from Huawei. However, a few days ago, reports were coming in from Reuters stating that the complete Honor sale business could fetch anything between 15 billion yuan and 25 billion yuan for Huawei.

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