For a long time, there were too many speculations on the internet that Huawei sells its Honor sub-brand of smartphones. In 2013 Huawei started sub-brand Honor to sell cost-effective or medium range specification smartphones in China and throughout the world. Is the fabulous venture of Honor and Huawei coming to an end? Who is going to buy sub-brand Honor? Stay tuned as we will be answering all your questions in this article.
Huawei has confirmed the speculations and has made an official announcement that it is going to sell its Honor Sub-brand of medium-range smartphones. In simple terms, the statement means that Huawei will no longer have ownership of Honor, and it will also sell all the employees and the management of Honor to the buyer. Now, Honor has to produce its own designs and smartphones, and it will no longer fetch help from its Chinese parent company Huawei.
Why is Huawei selling honor?
Huawei announced that it is going to sell honor for reviving its network business. Earlier, Washington stated that Huawei is a threat due to specific policies, but the company denied all the allegations. Huawei technologies private limited announced that it would sell its Honor sub-brand once the sale of all its smartphones comes to an end.
Huawei also leaked the information that the buyer of its sub-brand. Honor also belongs to Shenzhen, which is in the same-region where its head-quarters is present. The news reports also claim that Huawei will be selling its flagship smartphone brand honor for one hundred billion Yan, around fifteen billion US dollars.
According to developers from Honor, they had to force this decision to survive in the global market’s highly-competitive environment and where the scenario is against its parent company Huawei which is facing allegations.
Who is going to Honor for fifteen billion dollar deal?
Zhixin New Information technologies private limited company from Shenzen has confirmed that they will be signing a deal of hundred billion Yan with Huawei. According to Zhixin’s new information technologies, private limited buying Honor is the best solution to retain the brand’s employees and customers.
Huawei has suffered severe losses as it is banned from using Google services. However, Huawei is using Google operating system as it is an open platform, and there is no commercial transaction between the two companies. Also, the sales of Huawei smartphones outside China have been declined to 13 percent, which forced the parent company to make a call to sell its sub-brand “honor.”
Huawei also published a statement that clearly stated that it is selling honor for its own good and retaining its customers, management, and employees.
— Digital Chat Station (@StationChat) November 17, 2020
What changed can we expect in Honor from now on?
It will be tremendous suffering for Honor as it cannot fetch access to any technology from its parent company. The new buyer of Honor will establish a strong relationship with Google and other suppliers to revive it. The cut-off of Huawei and Honor’s relationship means that consumers can witness two unique products from both brands. Now, both companies have to compete with each other in the global markets for uplifting their sales.