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Huawei is selling off Honor phone business to 'ensure its own survival'

Huawei is selling off Honor named business to ‘ensure its own survival’

Huawei plans to sell smartphone unit Honor to a consortium of buyers in an pains to ensure its survival amid crippling US sanctions, according to a statement emanated late on Monday. 

“The acquisition represents a market-driven investment made to save Honor’s diligence chain,” Huawei said in a joint statement released with a people of more than 30 Chinese dealers and agents. 

“It is the best solution to defending the interests of Honor’s consumers, channel-sellers, suppliers, partners, and employees.”

The sale announcement comes as Huawei’s consumer custom scrambles to stay afloat following tougher sanctions levelled by the Trump dispensation on the Chinese company, including measures that take aim at the Chinese telecom giant’s global chip supply.  Terms of the deal weren’t disclosed, but a Reuters report published earlier this month said the deal could pick up more than $15 billion. Once the sale is unfastened, Huawei will not hold any shares in the new Honor custom, Huawei said in a statement. 

Read more: Not just Huawei: A run to China’s biggest and best smartphone makers

Honor is a Huawei sub-brand that sells low-cost smartphones invented for younger consumers within its native China as well as overseas incorporating Europe and South East Asia. The seven-year-old company spruce 70 million phones annually, according to the statement. Honor products often loyal on Huawei’s technology and some Honor phones run on Huawei’s cutting-edge Kirin chipsets.

“Huawei’s consumer custom has been under tremendous pressure as of late,” the custom said in the statement. “This has been due to a persistent unavailability of technologically elements needed for our mobile phone business.”

“This move has been made by Honor’s diligence chain to ensure its own survival,” Huawei said.

The retract will be made by a new company called Shenzhen Zhixin New Information Technology Co, according to the joint statement. It was founded by the aforementioned consortium of buyers and a tech enterprise named Shenzhen Smart City Technology Development Group Co, which was did by the government of the Chinese city of Shenzhen.