The Honor brand was founded in 2013 to give Huawei the opportunity to remain competitive in the mid-range smartphone market in China and internationally. The advantage of a sub-brand is that Huawei can focus its activities on the high-end. However, it has been a few days since analyst Ming-Chi Kuo, known for his solid sources on Apple, said Honor and Huawei may be going different paths.
So far these have only been solid rumors, but rumors nonetheless. But today the UK media Reuters just published an article mentioning Huawei’s sale of the Honor brand. Contrary to Ming-Chi Kuo’s announcement, Reuters mainly talks about the sale of certain parts of the company such as supply chain management or R&D. This sale is expected to be more than 25 billion yuan, or about 3.1 billion euros.
A solution to bypass the United States ban?
As of this writing, the potential buyer is none other than Digital China, the main distributor of Honor smartphones. However, other companies have put forward repayment intentions, and not any since we discovered Xiaomi and TCL, for example. But the question remains, why do we want to part with the honor.
It seems that American restrictions are not in vain. You know the Trump administration has taken many measures to disrupt Huawei’s development. For example, the Chinese company can no longer use Google services, which complicates its plans in the West. The replacement of some of Huawei’s honorary divisions would enable Honor to circumvent US measures against the Shenzhen company. It must be said that Honor accounts for more than a quarter of the sales of the Chinese group in the second half of the year. Which is not to be neglected. With the reintroduction of Google services on Honor smartphones, Huawei could continue to dominate the wireless market without worrying about US measures. Ming-Chi Kuo recently said: “When Honor becomes independent from Huawei, its component purchases will no longer be subject to US regulations that apply to Huawei.”
Nothing has been confirmed so far, and the US government could simply duplicate the measures applied to Huawei for Honor. Case continues.