Huawei has sold its Honor smartphone business

Honor Company

A report from last week claimed that Huawei to sell its Honor smartphone business. The report is now confirmed as Huawei has announced that its Honor business is sold to Shenzhen Zhixin New Information Technology Co., Ltd. . The company has signed an agreement to fully acquire the Honor business.

Huawei will not own any share once the sale is complete. The deal includes every honor assets like R&D, supply chain management, and all other assets. Huawei also confirmed that it will no longer participate in the management and decision making.

Honor’s new owner Shenzhen Zhixin New Information Technology Co. Ltd. was established by a consortium of more than 30 agents and distributors. The reason for the deal is currently unknown nor the deal value. After the US ban, Huawei and Honor were restricted from doing any business with American companies. Due to this, Google revoked its license for using Google services in Huawei and Honor products. This lead to a decrease in sales of Huawei and Honor branded products.

Increasing restrictions blocked many chipmakers including TSMC for supplying chips to Huawei and Honor. Reports floating on the internet believe that Huawei is planning to set its own chip production unit and to do this, the company needs a lot of money. So, this could be a reason for selling the Honor smartphone business.