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Earlier, HUAWEI it was speculated that he sold his sub-brand HONOR to another company. Now, the news has arrived confirming that the Chinese tech giant has already done so. Sooner or later, HONOR will become a separate HUAWEI brand with an official announcement.
According to the source, HUAWEI is already in the final stages of signing the agreement with a newly formed joint venture between several of the major mobile phone distributors in China: Putian, Tianyin, China Post, Aishide, etc., and a company investment company with a background from Shenzhen SASAC. The acquisition is also expected to cost around 5-25 billion YUAN (~ RM3-15 billion). It is said that the official announcement could take place around November 20.
According to sources, Huawei sold the Honor smartphone unit to a recently established state-owned joint venture, aiming for an IPO in 3 years.
The prerequisites of the acquisition is that the new company can buy and use 5G chips. The official announcement of the agreement will be made around November 20. pic.twitter.com/KipBu3SotR– Eva 郑 عائشة (@evazhengll) November 8, 2020
Apart from that, it is mentioned that the agreement includes the entire employee base, research and development and the related supply chain. Therefore, it will not be necessary for the new owner to start everything from scratch. Not to mention, the brand will be able to work with US companies again after leaving HUAWEI.
Reputed insider Ming-Chi Kuo has claimed that this is a win-win solution. Not only can HUAWEI continue to focus on the high-end market and telecom equipment without worrying much about its budget smartphone market, HONOR can also source Qualcomm chipsets and have access to full Android once again.
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