Huawei sells Honor brand to Chinese consortium – Tablets and phones – News

Huawei has sold its subsidiary brand Honor to a consortium of Chinese companies and a state organization. The manufacturer has confirmed this. In recent weeks, rumors had already been made that the sale was imminent.

Huawei confirms the sale in a statement on your own site. The consortium purchasing the shares consists of a government organization and thirty resellers of Honor devices. Huawei has released smartphones, wearables and internet-of-things equipment under the brand in recent years, with young people as the target group.

Huawei says the sale was necessary due to a continuing shortage of technical parts for its smartphones. That’s because of it ban by the US government for US companies to trade with Huawei or Huawei subsidiaries. The sale is to keep Honor phones on sale. “This move was made by Honor’s industry chain of companies to help them survive.” The wording seems to indicate that Huawei itself no longer wanted to continue developing Honor phones.

The buyer is a consortium called Shenzhen Zhixin New Information Technology. It contains thirty Chinese companies. There are quite a few state-owned companies in between, such as energy supplier Shenzen Energy and road builder Shenzen Expressway, together with electronics chain Suning, part of Alibaba Group, among others.

The sale would allow Honor to purchase parts for smartphones, separate from Huawei. Huawei will probably receive a sum of money for the sale, although it is unknown how much that is. In recent years, about a quarter of Huawei smartphone sales have been from Honor.

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