The sale of the Honor brand by Huawei is made official, in the statement that confirms everything, part of the causes that motivated the movement are revealed.
Has been fulfilled an exact week from the moment Huawei It took us all by surprise with the reveal of the potential sale of everything related to its Honor brand.
At the time, there was a lot of speculation about the causes behind this transaction, which at first glance seemed not originally contemplated.
It was said that it was all part of a strategy to ensure the employment of potential affected workers in the town of Shenzhen. Or even that the deal with Qualcomm the integration of Honor was left out of his capacities. But it is possible that it was something else.
The United States trade embargo would have had weight
On November 17, 2020, Huawei has released an official statement, published on its website to formalize the sale of its Honor brand.
In the published text we can find a series of statements and allusions that mark the precise context in which the transaction was made:
Huawei’s consumer business has been down tremendous pressure lately. This is due to the persistent lack of the technical elements necessary to maintain our mobile phone business.
Therefore, Huawei Investment & Holding Co., Ltd. has decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Technology Co., Ltd.
This sale will help Honor channel vendors and providers to get through this difficult time.
Once the sale is completed, Huawei will not own shares or participate in any business management or decision-making activities in the new Honor company.
This movement has been carried out by the industrial chain of Honor to ensure their own survival.
As highlighted by the prominent parts of the statement, the absolute reasons for selling Honor lie in the commercial situation they are in and the intention of ensuring the survival of the brand.
In recent months, the firm has been subject to strong pressure and restrictions from the United States government with its regulatory and embargo measures.
Everything indicates that little by little they have been finding the way to reconfigure their strategy. But Honor’s departure would have been a necessary move to move on.