The situation of Huawei and Honor has changed radically throughout the last year. Following the veto of the Donald Trump government, the two brands have lost market share in Spain at a rapid pace. For this reason, the manufacturer is working on solutions for its secondary brand, which is the one that is noticing this veto the most.
Honor is a brand that caters to a younger audience, with phones that have more adjusted prices. Not being able to use Google applications and services is being a hard blow for the brand, forcing Huawei to seek solutions. One of them is its sale, as mentioned a few days ago, and it seems to be something that is underway.
Huawei’s plan to save Honor could be as simple as selling the companyHonor has become a global brand with a strong presence in the young audience, and according to one analyst, Huawei selling it would be a great move.
Huawei in negotiations to sell Honor
As reported from Reuters, Huawei is currently in talks to sell Honor. Currently, these talks are taking place with Digital China Group Co LTD, a giant in the Asian country, but there are no other companies interested as well, like TCL or Xiaomi. Although at the moment it seems that Digital China Group Co LTD is the best positioned to obtain the agreement.
The details of the operation, that could reach 25,000 million yuan (3,160 million euros), would include the sale of the Honor brand, as well as the research and development division and also the business responsible for managing the supply chain. Digital China is the main distributor of the brand’s phones, so it seems to be Huawei’s preferred option to execute such a sale.
This operation could benefit both Huawei and Honor. For the former it represents the opportunity to recover the development costs of this secondary brand, while for the latter it would be to get rid of the limitations imposed by the American government. Since by ceasing to be owned by Huawei, the veto would no longer affect them, so they could use Google applications and services on their phones again. This would help your sales improve and regain some of your lost market share.
It is not known at the moment in what state these conversations are nor when can we expect an agreement between the two companies or if it will be another company instead of Digital China Group that ends up becoming the owner of Huawei’s secondary brand. It sure isn’t the last chapter in this story, so we hope to hear more soon.
The entry Huawei prepares to sell Honor and release it from Trump’s veto appears first in The Free Android.