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Confirmed: Huawei sold its sub-brand HONOR!

A week back, there were reports claiming that Huawei is in talks to sell its HONOR sub-brand. Today, Reuters confirmed that the tech giant has sold its budget smartphone brand unit HONOR to a consortium of over 30 agents and dealers.
Confirmed: Huawei sold its sub-brand HONOR!
File photo: One of HONOR's flagship phones last MWC 2019

Not a part of Huawei anymore

The consortium issued a joint statement stating that they're setting up a new company called Shenzhen Zhixin New Information Technology to handle HONOR's business.

The deal will include everything from R&D capabilities, supply chain management, and other HONOR assets. HONOR currently has over 7,000 employees.

The statement added that Huawei will not hold any shares in the new HONOR company after the sale.

No figure for the transaction was revealed, but a previous reported to be around USD 15.2 billion (around PHP 183 billion).

Huawei said that this move has been made by HONOR's industry chain to ensure its own survival. The company said that its consumer business has been under "tremendous pressure" due to the "persistent unavailability" of technical elements for its phone business.

Reuters reported that one source said on Tuesday that the US government will have no reason to apply sanctions to HONOR after its separates from Huawei.

The source said that Digital China was not a part of the final buyer group contrary to the first reports.

Source: Reuters
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