Huawei has confirmed what has been widely speculated about in recent days - it will sell its Honor division, and not just its smartphone part. The buyer is a consortium of partners and Chinese government-funded enterprises Shenzen Zhixin New Information Technology.
In a statement, Huawei said the decision to sell Honor was made by the division's supply chain to "ensure its survival" after "tremendous pressure" and "persistent unavailability of technical features needed for our smartphone business."
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As is well known, Honor's products are largely dependent on Huawei technologies, so the US sanctions affected it practically equally. For example, the V30 series uses the same Kirin 990 chipset that powers the flagship Huawei P40 series. Under the new owner, the division should have more flexibility in developing its products and be able to deal with technology giants such as Qualcomm or Google.
The new owner of Honor, whose products are mainly aimed at the young and "brave", and which was established as a separate brand in 2013, will be the newly formed consortium of companies and Chinese government-funded enterprises Shenzen Zhixin New Information Technology. The value of the transaction was not disclosed, but unofficial reports from the past few days spoke of 100 billion yuan (about 339 billion crowns in conversion). The Chinese smartphone giant added that it will not hold any equity stake in the new company and will not interfere in any way in its management.
