NEW DELHI: China’s premier telecom company Huawei has decided to sell off its smartphone brand Honor amidst pressure from the United States that has disrupted its entire supply chain.
“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. 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 said on Tuesday. The tech giant did not reveal any financial details on the deal. Earlier, the Donald Trump-led US government had placed sanctions on the Chinese company and restricted supplies on national security grounds. Huawei has repeatedly denied this allegation.
“This move has been made by Honor’s industry chain to ensure its own survival. Over 30 agents and dealers of the Honor brand first proposed this acquisition,” said Huawei. Honor competes with the like of Xiaomi, Oppo and Vivo in the lower-priced handset market. Since its creation in 2013, Honor has shipped over 70 million units annually.