Honor was sold for ‘its own survival’.
A report by The Verge confirms that Huawei is selling off its Honor smartphone business for $15 billion to Shenzhen Zhixin New Information Technology Co., which is a consortium of different government partners and businesses. Huawei said that the move was done to ensure Honor’s survival in the market.
Honor devices were catered towards users looking for mid-range options with a more affordable price tag. It also rides on Huawei’s own hardware and software technologies that include the Kirin SoC and Huawei Mobile Services that run on the device. The US sanctions against Huawei also meant that Honor smartphones do not have access to Google services like the Play Store, Gmail, Drive, etc.
The sale also confirmed that Huawei will no longer ‘hold any shares or be involved in any business management or decision-making activities’ for the company and that the new owners will have the responsibility on how Honor moves forward.
The Honor smartphone is also a popular choice amongst budget-conscious consumers in the Middle East, including the UAE.