Huawei confirms the sale of Honor to “guarantee its survival”

Huawei, through an official statement, has confirmed the news that . announced a week ago: the Chinese conglomerate has decided to divest itself of the Honor brand and all assets related to it to « guarantee its survival. »

The new owner will be Shenzhen Zhixin New Information Technology. This consortium, according to the brand, is made up of more than 30 partners of the company, who proposed the acquisition.

« When the sale is complete, Huawei will not retain any shares or be involved in any business management activities or decision-making in the new Honor company, » the Chinese corporation said in a statement.

Huawei, at the moment, has not revealed the figures of the operation. Nor has it specified the time window they manage to complete the transfer of the company to Shenzhen Zhixin New Information Technology, the new owners.

US pressure affects Huawei and Honor

In the same statement, Huawei acknowledges being under « tremendous pressure. » The reason, according to the company, is « the unavailability of technical elements necessary for our mobile phone business, » a situation caused by successive vetoes imposed by the United States Government.

Since mid-2019, the brand has been pivoting its strategy to circumvent the commercial restrictions imposed by the North American country. The impossibility of incorporating Google services, for example, has led the Chinese company to promote Huawei Mobile Services, which more and more developers are adopting around the world.

The restrictions have also affected the purchase of electronic components. Huawei, at this time, cannot work with companies like TSMC in the manufacture of their Kirin processors, designed by themselves. This leaves the Chinese brand at a competitive disadvantage compared to companies like Apple or Samsung, with whom it competed in Europe before the imposition of the veto.

It is possible that, under Shenzhen Zhixin New Information, Honor may reach agreements with companies such as Qualcomm or Google. That, at least, is the aspiration that is glimpsed in the company’s statement, which claims to have made this decision to ensure the survival of its division.