In today’s report, it has been confirmed that HONOR has indeed been sold to Shenzhen Zhixin New Information Technology Co., Ltd. which actually means HONOR will have a bright future ahead now.
HONOR is a subsidiary brand under Huawei, which started off as a more budget-oriented brand, and eventually, Huawei went on to compete with HONOR directly. Nonetheless, HONOR was always the victim that got caught in the crossfire between Huawei and the sanctions.
Huawei has published a statement on their own news site, citing “tremendous pressure”.
Huawei’s consumer business has been under tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone business. Huawei Investment & Holding Co., Ltd. has thus decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Technology Co., Ltd. This sale will help Honor’s channel sellers and suppliers make it through this difficult time.
Once the sale is complete, Huawei will not hold any shares or be involved in any business management or decision-making activities in the new Honor company.
This move has been made by Honor’s industry chain to ensure its own survival. Over 30 agents and dealers of the Honor brand first proposed this acquisition.
Since its creation in 2013, the Honor brand has focused on the youth market by offering phones in the low- to mid-end price range. During these past seven years, Honor has developed into a smartphone brand that ships over 70 million units annually.
Huawei highly appreciates the continued dedication, attention, and support given by Honor’s consumers, channel sellers, suppliers, partners, and employees.
We hope this new Honor company will embark on a new road of honor with its shareholders, partners, and employees. We look forward to seeing Honor continue to create value for consumers and build a new intelligent world for young people.
Huawei Investment & Holding Co., Ltd.
November 17, 2020
There is also another joint statement between the Shenzhen Zhixin New Information Technology Co., Ltd. which details the acquisition and also the detailed co-owners of HONOR brand. There are lots of co-owners now, by the way.
But what happens next?
Probably nothing as of now. At least not so soon. However, reading back one of the quotes within Huawei’s official statement, we can see this:
Once the sale is complete, Huawei will not hold any shares or be involved in any business management or decision-making activities in the new Honor company.
In case it isn’t already obvious enough, current HONOR smartphones are all manufactured using Huawei’s factories, and also implemented with Huawei’s software. HONOR laptops are also pretty much just rebranded Huawei laptops. Let’s not forget that the HONOR Magic Earbuds is also just… rebranded Huawei FreeBuds 3i.
This means that HONOR can stretch its legs and actually make products on their own. Better yet, HONOR smartphones can finally have Google Mobile Services once again since it’s not a part of Huawei anymore.
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