Huawei Plans To Sell Its Low-cost Phone Division To The Honor Consortium

Huawei Plans To Sell Its Low-cost Phone Division To The Honor Consortium

China's technology group Huawei plans to sell its low-cost phone division to the Honor Consortium, led by Digital China phone distributor and Shenzhen city government, where Huawei is headquartered. This was reported by Reuters, which referred to sources familiar with the plan. Huawei decided to take this step after the sanctions of the United States. These forced the Chinese company to shift its focus to premium phones and business-oriented business. At the same time, the move of the Chinese concern suggests that the company does not anticipate that the US attitude towards Huawei should change in the foreseeable future, despite changes in the White House. Huawei created the Honor brand in 2013, but it operates largely independently. According to analysts, after the sale, it would no longer be subject to US sanctions targeting Huawei. The contract worth 100 billion yuan (12.74 billion euros) should cover the sale of almost all assets, including brand, research and development, as well as supply chain management, the resources added. According to one source, Huawei could officially announce the sale of the brand on Sunday, November 15. Digital China, which also works with Huawei in other areas, such as cloud services, plans to finance most of the contract through bank loans. After the sale, Honor plans to keep most of its management team and employees, of which it currently has more than 7,000, added resources, adding that the company could go public in three years.