Huawei sells the Honor phone brand in order to ensure its existence

Huawei announced the sales of its mobile budget brand Honor following a report last week that a deal was imminent. Huawei states its rationale for sale as a way to survive for Honor’s suppliers and dealers despite the sanctions imposed by the USA and other nations against Huawei when the company ships over 70 million units annually. Huawei points out

The politicians who declare the company a risk have prevented it from accessing chip suppliers and American companies, such as Google. Now Huawei “is not holding any shares or participating in the business or decision-making of the new Honor company,” even if it is uncertain whether this will suffice to reconnect its business relations.

There is no mention of the financial sales data that had been rumored to cost approximately $15 billion, but ShenzhenZhixin New Information Technology Co., Ltd. acquires an Honor which the Associated Press reports is a ‘technology firm owned by the government in the south town of Shenzhen.’

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