Last week we saw reports that Huawei was on the verge of selling off Honor, its more budget-focused sub-brand. There were no serious terms of the possible deal but reports claimed that Huawei stood to raise up to $15 billion in funds from the sale.
Best of all, the Honor brand would remain intact — at least, according to last week’s reports. Well, this week the sale is official. Huawei is being forced to part with Honor, reluctantly. The official statement doesn’t leave that in any doubt.
Honor the terms of the deal
Huawei said in a statement that its “…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.” Which is a rather restrained way of saying that the Donald Trump administration has put a stranglehold on the Chinese company’s ability to do business.
In line with the earlier reports, the sale of Honor will see the brand in its entirety moving over to Shenzhen Zhixin New Information Technology Co., Ltd, a consortium that will probably keep the product line alive… once alternative channels for the components Huawei could no longer supply become available.
Terms of the sale weren’t disclosed but there is definitely money involved.
