- Huawei has sold to Shenzhen Zixin New Information Technology Co.
- Once the sale is complete, Huawei will have no stake in Honor.
- There are no words about the future of Honor phones and other products.
After weeks of rumors about the sale, Huawei has finally sold its sub-brand Honor. The new owner of the Honor brand is a company called Shenzhen Zixin New Information Technology, which is a consortium of more than 30 agents and dealers, according to a joint statement on the purchase by 30 companies.
In a statement detailing the development, Huawei blamed Honor’s sales for “tremendous pressure” on its business due to US sanctions. The company says it was forced to sell all of Honor’s commercial assets because of the “constant availability of technical elements” required for its mobile phone business.
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Once the sale is completed, Huawei will not hold any stake in Honor and will not engage in any decision-making activity. “The move is made by Honor’s industry chain to ensure its own survival,” Huawei noted in a statement.
Honor was established in 2013 to sell cheap phones, allowing Huawei to compete with low-cost Chinese phone makers in the retail online retail space. The latter is a variety of brand wearable and smart home products such as smartwatches, TWS earphones, air purifiers and more.
Huawei claims that subsidiaries still carry more than 70 million units annually today. It is not clear what direction the new male will take under his new ownership, but the above joint statement said that Honor’s development direction will not be affected.
Huawei concluded its sales announcement by saying, “We look forward to continuing to build value for Honor customers and create a new intelligent world for young people.”
