Huawei talks with Digital China Group Co Ltd and few others to sell Honor Smartphone parts for about $3.7 billion. Experts said that in the present situation of Huawei going through the US sanctions, Huawei might think it will be better to concentrate on high-end Huawei phones rather than on the Honor smartphone, created for millennials and cost-conscious people.
Huawei does not yet finalize the resources to be sold. But it is almost confirmed that the Honor is on the sale list. That includes its research and development capabilities and supply chain of Honor smartphone.
This news came out after a tech blogger from China declared that Huawei sells the shares of Honor. Apple analyst Ming-Chi Kuo stated in a report, “Huawei’s benefit to divest Honor so the business could be free of trade restrictions and Huawei gets to focus on high-end phones under its namesake brand.” He also stated that the Honor is independent of Huawei, and the parts that are banned by the US in Huawei are not included in Honor. In mid-September, even the president of Honor declined these rumors, which arose inside the company and spread.
In 2011 when Xiaomi budget phones were ruling the market, Huawei introduced the Honor smartphones as budget friendly phones. It is the same time when BBK group’s Vivo, Oppo, and realme release their budget phones into the market.
It is also a rumor that Digital China Group Co Ltd is the front runner when the sale is in talks, but there are other companies in the race like TCL and the smartphone maker Xiaomi for the Honors shares.
When someone asked Huawei’s main persons, they declined to accept the facts or say something about this rival. So experts are concluding that the rumors are true. Even TCL declined the comment, and Xiaomi did not respond to any of the comments about the Honor sales.
If the Honor sales are real, then the Digital China Group Co Ltd, which is also a partner in Huawei’s cloud computing, is willing to take all the share and through the all-cash transaction even if it has to deal with bank loans.
The Honor brand has been running since 2013, launched as a budget-friendly smartphone as a competitor of the Xiaomi, Oppo, and Vivo budget phones. From that moment, it almost operated independently from its parent company. Honor also made decent sales in Asia and Europe through these years.
Image source: Techcrunch