Huawei has finally sold off its sub-brand Honor after weeks of rumors about the sale. The new owner of the Honor brand is a company called Shenzhen Zhixin New Information Technology Co. It’s reportedly a consortium of over 30 agents and dealers, as per a joint statement signed by 40 companies involved in the purchase.
In a statement detailing the development, Huawei attributed Honor’s sale to the “tremendous pressure” its business has been facing because of US sanctions. The company says that “a persistent unavailability of technical elements” needed for its mobile phone business forced it to sell all business assets of Honor.
Once the sale is complete, Huawei will not hold any stake in Honor and will not be involved in any decision-making activities. “This move has been made by Honor’s industry chain to ensure its own survival,” Huawei noted in its statement.
Honor was instituted in 2013 to sell affordable phones that allowed Huawei to compete with other low-cost Chinese phone makers in the online retail space. The brand later diversified into wearables and smart home products such as smartwatches, TWS earphones, air purifiers, and more.
Huawei claims that the subsidiary ships over 70 million units annually as of today. It’s unclear what direction Honor will take under its new ownership but the aforementioned joint statement says that Honor’s development direction won’t be impacted.
Huawei concluded in its sale announcement by saying, “We look forward to seeing Honor continue to create value for consumers and build a new intelligent world for young people.”
