We have been warning you for a couple of weeks. The harsh situation that Huawei is subjected to and its relationships with other technology companies has ended up forcing the company to sell its second brand , HONOR . This has just been confirmed by the mobile brand in solitary confinement.
Due to high US restrictions severely limiting Huawei’s commercial and consumer telecommunications businesses, the company had to resort to selling its cheap smartphone brand. Focused on a young audience, now HONOR leaves the arms of Huawei , who saw her birth, to embrace a conglomerate of Chinese companies.
At such a difficult time when elements of industrial technology are unsustainable and consumer companies are under tremendous pressure, to allow Honor channels and providers to continue working, Huawei Investment Holding Co., Ltd. decided to sell all Honor’s business assets. The buyer is Shenzhen Zhixin New Information Technology.
HONOR has a new owner
Shenzhen Zhixin New Information Technology Co. has signed an agreement with Huawei to fully acquire the Honor smartphone business. The agreement establishes that the acquisition will protect the interests of consumers, channels, suppliers, partners and employees. Changes in ownership should not affect the direction of Honor development, and the current Honor leadership will remain in place.
The buying company acts as a conglomerate of agents, a group of investment partners and companies that will oversee resources, branding, production, distribution, services, operations and executive decisions.
Huawei will no longer have any stake in Honor, nor will it be part of the company’s executive board.
What happens now with the users of the brand?
The great question that now remains in the air is knowing what will happen, not with the current mobiles of the firm, but with the future ones. After the US government accused Huawei of posing a threat to national security, it introduced the Chinese firm to its Entity List , preventing US companies such as Google from doing business with the manufacturer.
This prevented both Huawei and Honor from being able to US components, but Google also revoked both Huawei’s and Honor’s licenses to use Google’s suite of applications, severely hampering Huawei and Honor sales in Western markets in recent years. years.
The deal to sell Honor could be the cash injection that Huawei needs to move forward without relying on US companies, although, they say, the official number of the operation has not been announced.
Source>Huawei