- Huawei sold Honor to Shenzhen Zhixin New Information Technology Co.
- Once the sale is completed, Huawei will have no stake in Honor.
- There is no word on the future of Honor phones and other products.
Huawei finally sold its Honor sub-brand after weeks of rumors about the sale. The new owner of the Honor brand is a company called Shenzhen Zhixin New Information Technology Co. It appears to be a consortium of more than 30 agents and resellers, according to a joint statement signed by 40 companies involved in the purchase.
In a statement detailing the development, Huawei attributed the sale of Honor to the “tremendous pressure” its company has been under due to US sanctions. The company claims that “a persistent unavailability of technical elements” necessary for its mobile phone business has forced it to sell all of Honor’s business assets.
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Once the sale is completed, Huawei will not own any stake in Honor and will not be involved in any decision-making activity. “This decision was taken by Honor’s industrial chain to ensure its own survival,” Huawei noted in its statement.
Honor was established in 2013 to sell affordable phones that enabled Huawei to compete with other low-cost Chinese phone makers in online retail. The brand then branched out into wearable devices and smart home products such as smart watches, TWS headphones, air purifiers, and more.
Huawei says the subsidiary ships more than 70 million units per year to date. It is unclear which direction Honor will take under its new ownership, but the aforementioned joint statement indicates that Honor’s direction of development will not be affected.
Huawei concluded in its sales announcement by saying, “We look forward to seeing Honor continue to create value for consumers and build a new smart world for young people.”