Huawei Confirms Plans to Sell ‘Honor’ Brand Following Weeks of Denials
Jan 10 2021
As the global leader in 5G technologies, Huawei's potential to design its own chips was thwarted since September by the us trade restrictions that banned all USA companies from supplying components and software to the global leader in 5G technologies. "It is the best solution to protect the interests of Honor's consumers, channel sellers, suppliers, partners, and employees", said the statement signed by the 40 companies.
Additionally, Huawei also uses Qualcomm'sSnapdragon chipsets on its past mobile phones which are from the leading American semiconductor company based in San Diego, California.
Honor along with its assets is being sold off to 'Shenzhen Zhixin New Information Technology Co. The deal to sell Honor could be the cash infusion that Huawei needs for this effort.
The change of ownership will not impact Honor's development direction, based on a joint statement between Huawei and the agents and dealers of the Honor brand.
A spin-out can in theory exempt Honor, a sub-brand launched to counter Xiaomi's cheap, online-focused smartphones, from the supply chain restrictions that have struck Huawei hard. Huawei firm notes that it sells about 70 million Honor units each year, and that it will continue selling its flagship-class P- and Mate-series handsets.
Some chip suppliers, such as Intel and AMD, as well as image sensor providers Sony and Omnivision, have received licenses from the USA government to resume some business with Huawei, though it is not yet clear exactly what products those licenses cover, Nikkei reported earlier.
Huawei has announced the sale of its smartphone brand Honor citing 'tremendous pressure as of late.' The company says it has had persistent unavailability of technical elements needed for their mobile phone business due to the United States sanctions.
Shortly after a report emerged about Huawei considering selling off Honor, the deed has happened.
We read that as meaning Honor will reappear in new form, the brand name in tact - but the products being all-new.
The Shenzhen Zhixin New Information Technology vows to continue Huawei's legacy and development of the budget smartphone brand, Honor. Those were tightened this year when the White House barred manufacturers worldwide from using USA technology to produce chips for Huawei, including those designed by its own engineers.
That said, we have no information on how Honor's new owners planned to regain access to U.S. chips and other technologies including Google services. Many of Honor's phones were modified versions of Huawei devices with a few features stripped out and a lower price tag.
Honor's sales helped Huawei overtake Apple as the world's second-biggest smartphone maker by shipments a year ago. Nothing is guaranteed at this point, as HONOR is no longer owned by Huawei.