After multiple reports and speculations, Huawei officially lets go of HONOR, which is said to be a result of the US Trade Ban severely limiting the brand’s telecom, consumer and commercial businesses. Here’s Huawei’s statement on the sale:
At a difficult time when industrial technology elements are unsustainable and consumer businesses are under tremendous pressure, in order to allow Honor channels and suppliers to continue, Huawei Investment Holding Co., Ltd. decided to sell the entire Honor business assets. The purchaser is Shenzhen Zhixin New Information Technology.
Shenzhen Zhixin New Information Technology signed an agreement with Huawei Investment Holdings Co., Ltd. to acquire HONOR’s smartphone business entirely. Shenzhen Zhixin is a consortium established by more than 30 agents and distributors.
Under the agreement, Huawei will no longer hold any shares with HONOR nor will it part of HONOR’s executive board. With the said sale, this should give HONOR more flexibility in developing its products, being able to deal with US companies like Qualcomm and Google.