As well as making smartphones under the Huawei brand, Huawei also makes devices under the Honor brand and now the company has announced that it is selling its Honor smartphone business.
Huawei is selling its Honor smartphone business Shenzhen Zhixin New Information Technology Limited, you can see a translated statement from the company below.
At a difficult time when industrial technology elements are unsustainable and consumer business is under great pressure, in order to allow Honor channels and suppliers to continue, Huawei Investment Holding Co., Ltd. decided to sell the entire Honor business assets, and the purchaser is Shenzhen Zhixin New Information Technology Limited company. As for the glory after the delivery, Huawei does not own any shares, nor does it participate in management and decision-making. (Translated)
Background and Reasons for the Sale
The decision to sell the Honor brand comes at a time when Huawei is facing significant challenges. The company has been under intense pressure due to various factors, including trade restrictions imposed by the United States. These restrictions have limited Huawei’s ability to procure essential components and technology, which has had a profound impact on its business operations. By selling the Honor brand, Huawei aims to ensure that the brand can continue to thrive independently, without being affected by the constraints that currently hinder Huawei’s operations.
Honor, which was established in 2013, has grown to become a significant player in the smartphone market, particularly among younger consumers. The brand has been known for offering high-quality devices at competitive prices, making advanced technology accessible to a broader audience. By divesting Honor, Huawei hopes that the brand will be able to leverage new opportunities and partnerships that were previously unavailable due to the restrictions on Huawei.
Impact on the Market and Future Prospects
The sale of Honor to Shenzhen Zhixin New Information Technology Limited is expected to have several implications for the smartphone market. For one, it could lead to increased competition as Honor, now operating independently, may be able to innovate and expand its product offerings without the limitations previously imposed by Huawei’s situation. This could benefit consumers by providing more choices and potentially driving down prices.
Moreover, the sale could also impact Huawei’s market strategy. With the divestiture of Honor, Huawei may choose to focus more on its premium smartphone segment and other technology ventures, such as 5G infrastructure and cloud computing. This strategic shift could help Huawei navigate the current challenges and emerge stronger in other areas of its business.
Shenzhen Zhixin New Information Technology Limited, the new owner of Honor, is expected to bring fresh investment and strategic direction to the brand. This could include expanding into new markets, enhancing research and development efforts, and forming new partnerships with suppliers and technology providers. The goal would be to maintain and grow Honor’s market share while continuing to deliver innovative products that meet consumer needs.
Huawei has not revealed how much its Honor smartphone business has been sold for, you can find out more information over at their website at the link below.
Source Huawei, Myfixguide
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