Remember Honor? It’s the ecommerce-focused mid-range smartphone brand that falls under the Huawei umbrella. It is for now anyway, as Huawei has confirmed in a statement that it will be selling its Honor business.
The reason for the sale, unsurprisingly, is the increasing pressure that the US trade sanctions have placed on Huawei, especially as it is unable to secure key components from companies in the United States currently.
“Huawei’s consumer business has been under tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone business,” explains a press statement on the matter.
“Huawei Investment & Holding Co., Ltd. has thus decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Technology Co., Ltd. This sale will help Honor’s channel sellers and suppliers make it through this difficult time,” it adds.
What this means for Honor smartphones locally, which have launched in the country to mixed results, remains to be seen.
“Once the sale is complete, Huawei will not hold any shares or be involved in any business management or decision-making activities in the new Honor company,” the statement confirms.
“This move has been made by Honor’s industry chain to ensure its own survival,” it continues.
For now, a willing buyer remains unknown, but reports suggest a state-owned entity might be looking at an acquisition, which cost as much as $15.2 billion to complete. If such a deal materialises, it will prove interesting to see what the fate of Honor will be then.
As for what this means for existing Honor smartphone owners, no further updates have been disclosed.