Leading Chinese tech giant Huawei Technologies Co Ltd will be selling its budget brand smartphone unit Honor with an aim of keeping the brand alive. Huawei will be selling the smartphone brand to a consortium of more than 30 agents and dealers.
On Nov 17 the consortium issued a statement announcing the deal. The deal will be made through a new company going by the name Shenzhen Zhixin New Information Technology.
In a statement Huawei said its consumer business has been under immense pressure due to persistent unavailability of technical elements for its smartphone business.
“This move has been made by Honor’s industry chain to ensure its own survival,” added Huawei.
In addition Huawei said it will not be holding any shares in the new Honor Company after the deal has been closed. The change of ownership will not interfere with Honor’s development direction.
The U.S government has been on loggerheads with Huawei following spying allegations made by Trump’s administrations against the company. This resulted to U.S blacklisting the company from undertaking 5G projects in the country further imposing sanctions on the company.
Directly involved sources on the matter claim that U.S will have no reason to continue imposing sanctions on Honor after the sale since it will now be separated from Huawei.