Chinese multinational technology company Huawei is a well-known name in the world of smartphones. This time they are going to make a big decision in the smartphone business. They have decided to sell a part of their sub-brand Honor smartphone.
According to a Reuters report, Huawei is in talks with Digital China Group Co Ltd and other buyers to sell part of their Honor smartphone. Huawei could earn 25 billion yuan (৭ 3.6 billion) through the deal.
The Honor brand was founded by Huawei in 2013. But its trade is conducted almost separately. The Honor brand was created with the young generation in mind. That is why it is available in China and other markets at low to medium prices. Huawei now wants to focus more on their advanced technology flagship phones.
The report, meanwhile, did not say which part of Honor would be sold. But according to sources, Honor has the potential to transfer research and development capabilities and related supply chain management. This deal will be in full cash. Prices range from 15 billion yuan to 25 billion yuan. Digital China is being considered as the main claimant of this deal. TCL and Xiaomi can also participate in this deal.
Kuo Ming-chi, an analyst at TF International Securities, said the sale of any part of the Honor smartphone by Huawei would be good for the company's suppliers and the Chinese electronics industry. The reason is that even if Huawei is banned in America, it will no longer be effective on Honor. As a result, overall, it will be beneficial for Honor.