Huawei used to launch mid-range and budget smartphones under its sub-brand Honor, but the company is selling it. Its business has been greatly affected for some time.
Huawei announced the sale of smartphone maker Honor
Chinese brand Huawei’s all brand Honor has been popular in India for a time. The company launches mid-range and budget smartphones under the Honor brand. Smartphones have not been launched in India under this brand for some time.
For some time, there were reports that Huawei is selling all its brand Honor. Now it has been cleared. The company is now selling Honor mobile business.
In a statement from Huawei, the company has decided to sell all the business assets of Honor. The buyer is a Chinese company named Zhixin New Information Technology.
Huawei has hoped that the company through which Honor is being sold will fully protect the interests of Honor’s customers, employees, suppliers and partners.
It is important to note that till now neither of the two companies has told how much this deal has been done. However, based on some previous reports, it is estimated that the deal could be worth $ 15.2 billion.
According to the information received about Honor, the company’s workforce will remain the same even after being sold.
Now the new parent company Honor will also see the business of other countries. Business, branding, production, distribution, service and operation of other countries including China will now be handed over to Zhixin.
What is the reason for Honor being sold?
It is important to note that Honor has also been affected due to difficulties with Huawei in the last few years.
Huawei was banned in some other countries including the US, and not only that, Google canceled the license for Android.
Despite this, Huawei’s business grew steadily in China and the company for some time overtook Samsung and became the world’s number-1 mobile company. However, according to new data, Samsung has left it behind.
However, Honor’s business has also been affected due to restriction on Huawei in many countries. Huawei has also said in his statement that Honor’s business was facing many difficulties.
It has also been said in the statement that at this time industrial technology elements are unsustainable and there is pressure on the consumer business.
Since Honor’s business will continue to run in countries other than China, even after being sold, Honor phone users are not expected to face any problems in service and support.
Because of this, the company has to take this decision to keep the channels and suppliers of Honor.