[ad_1]
Huawei has announced plans to sell Honor, its smartphone business focused on mid-range products for younger consumers. Huawei says the decision “was made by Honor’s industrial chain to ensure its survival”, following “enormous pressure” and “a persistent unavailability of technical elements necessary for our mobile phone business”.
Honor’s products often rely heavily on Huawei’s technology, so the company has been equally hit by US sanctions that prevent Huawei from doing business with American companies. The V30 line of phones, for example, uses the same Kirin 990 processor that powers Huawei’s flagship P40 devices. Under the new ownership, Honor should have more flexibility to develop its products, potentially being able to deal with the likes of Qualcomm and Google.
Huawei says it “will not hold any stake or be involved in any business management or decision making activities in the new Honor company.” This company will be owned by the newly formed Shenzhen Zhixin New Information Technology Co., a consortium of government-backed partners and companies.
Terms of the deal were not disclosed. Reuters reported earlier this month that an Honor sale proposal could reach 100 billion yuan ($ 15.2 billion).
Source link
