Huawei is selling its Honor unit for over $15 billion2020-11-10 18:10 by Daniela
Tags: Huawei, Honor
Huawei plans to sell budget-brand smartphone unit Honor in a 100 billion yuan ($15.2 billion) deal to a consortium led by handset distributor Digital China and the government of its home town of Shenzhen, people with knowledge of the matter told Reuters.
The all-cash $15 billion fee will include almost 7,000 Honor staff — along with all noted facilities — with the deal potentially being concluded as soon as this Sunday. With Honor being a subsidiary, like many sub-brands, it has suffered from being seen as the affordable alternative to Huawei.
After a sale, Honor would also be free of US restrictions and more able to compete in the mid-range market. It largely operates independently from its parent, pushing its own branding and product strategy. This includes distribution channels and research and development operations.
Honor sells smartphones through its own websites and third-party retailers in China where it competes with Xiaomi, Oppo and Vivo in the market for lower-priced handsets. It also sells its phones in Southeast Asia and Europe.
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