Huawei Technologies is currently considering selling its sub-brand Honor to other companies. After the sale, Huawei will focus on the mobile phone business of the same brand.
Huawei’s brand smartphones are usually positioned as mid-to-high-end devices with higher prices, while the Honor brand is a mid-range smartphone launched by Huawei for young people.
According to sources, the assets planned to be sold are still under discussion and yet to be determined, but they may include the Honor brand, technology, and R&D capabilities, and related supply chain businesses.
The reason for the sale is actually very simple. The development of the Honor brand is fairly smooth. The sale is only because the chip supply of Huawei is banned by the United States.
It is reported that Huawei will sell the overall assets of the Honor brand to focus on the Huawei brand. The sale price of the Honor brand and related assets is 25 billion CNY ($3.7 Billion).
The current bidding leader is said to be Digital China, which is the main distributor of Huawei Honor and has control over the familiarity of the Honor brand and sales channels.
Other potential buyers mentioned include Xiaomi and TCL Group, but TCL has already issued a response to media reports about the acquisition of the Honor brand, saying it is an untrue report.
Neither Digital China nor Huawei officially issued an official response to these media reports, and the rumored potential buyer, Xiaomi, has not yet issued a response.