Huawei is considering selling its Honor unit for $15.2 Billion. Honor, which is a sub-brand to Huawei, and makes budget smartphones for the company is reportedly up for sale. The Korean tech giant plans to sell its unit for the whopping amount to an association handled by (Honor) handset distributor, Digital China. And, also to the Chinese government, sources familiar with the matter have clarified to Reuters.
Honor Unit Purchase Deal
According to the report, amidst the ongoing US restrictions on Huawei, the company is gearing to shift its focus on more premium smartphones, which the Honor doesn’t make. In addition, the company is prioritising on corporate-oriented business and had to implement this deal, the sources confirm to Reuters.
The sources also indicate in the report, that this ongoing deal is an all-cash sale, which includes Honor’s branding, research and development and even its supply chain management. Besides, Digital China Group will be the top-two shareholders of Honor if the deal falls into place.
For those unaware, Digital China is famous for its Honor handset distribution in China, which also offers services to Huawei. The services include cloud computing and financial services with the Korean tech giant. As part of the deal, there are ought to be three more players who are reportedly backed by the government of Shenzhen.
Huawei created Honor unit in 2013. The brand makes smartphones and accessories tailored primarily to the budget segment in India as well. Honor competes with other Chinese brands like Xiaomi, Realme, and Oppo in this segment.
Honor is currently gearing up for its Honor 10X Lite smartphone launch on November 10, 2020. Not long ago, the company had also unveiled its new fitness tracker — the Honor Band 6 in China.