Huawei Could be Selling Its Honor Sub Brand for $3.7 Billion
Despite being one of the biggest smartphone manufacturers, Huawei has a company has seen a lot of downs in recent history. Everything from the Android license being revoked to all the U.S. sanctions that have been imposed on the company. It is safe to say that Huawei is not having a good time in the market, and the future hangs in balance, at the moment.
Now a new report has emerged that talks about how Huawei is in talks with Digital China Group and might be selling parts of the Honor sub-brand. The deal is likely going to close at 25 billion yuan or $3.7 billion.
Huawei Might Sell Parts of the Honor Sub Brand and Focus More on Making Higher End Devices
Now before you start wondering why the decision to sell, the Honor sub-brand came into the existence back in 2013 and focused on more budget-friendly smartphones in the market. Needless to say, Honor enjoyed quite a lot of success around the world but based on the recent sanctions, the smartphone business for Huawei as a whole has been impacted massively. This means that by selling parts of the Honor sub-brand, Huawei now wants to focus more on higher-end devices.
Another interesting information here is that by selling the brand to Digital China Group, the Honor sub-brand should theoretically be free of any sanctions. Even though the deal has not gone through, chances are that Huawei will end up selling the brand, its R&D, as well as supply chain management business to Digital China. For those who do not, aside from Digital China, TCL and Xiaomi are also in the race to see which company manages to grab Huawei's sub-brand.
Needless to say, we are looking to see whether this deal goes through. If it goes through, and Honor is sold, then as mentioned before, it will no longer have any sanctions imposed on it as it will not be a part of Huawei anymore.
As far as Huawei is concerned, we are aware that the company is finally moving to its own OS by next year but we are not sure how that is going to pan out, considering how the smartphone industry is currently dominated by Android and iOS.
Let us know what you think about Huawei's decision of selling the Honor sub-brand. Is it going to help them recoup the financial damages that the company has faced or is it too late?
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