Since its creation in 2013, the Honor brand has focused on the
youth market by offering phones in the low- to mid-end price range.
Struggling to keep
its consumer business afloat in the wake of the US sanctions, Chinese
conglomerate Huawei on Tuesday announced to sell off its Honor
smartphone business assets to China-based Shenzhen Zhixin New Information
Technology Co Ltd.
The company said
that the sale -- which could be around $15 billion according to multiple
reports -- will help Honor's channel sellers and suppliers make it through this
difficult time.
Honor smartphones
have been hit by US sanctions that prevent Huawei
from doing business with the US companies.
"Once the
sale is complete, Huawei will not hold any shares or be involved in any
business management or decision-making activities in the new Honor company,"
the company said in a statement.
"Huawei's
consumer business has been under tremendous pressure as of late. This has been
due to a persistent unavailability of technical elements needed for our mobile
phone business," it added.
Huawei said the move
has been made by Honor's industry chain to "ensure its own survival".
Over 30 agents and
dealers of the Honor brand first proposed this acquisition.
Since its creation
in 2013, the Honor brand has focused on the youth market by offering phones in
the low- to mid-end price range.
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