Honor was, for several years, a reference brand for those who wanted a quality smartphone at an affordable price. However, this highlight has faded and that could be one of the reasons for Huawei’s decision.
According to the Reuters agency, Huawei is preparing to sell part of Honor. The negotiations will be carried out with the company Digital China Group and the values of the deal could reach US $ 3.7 billion.
The outlines of the business are not yet clear. Even so, it is speculated that the sale may include the Honor brand, its research and development department and the component acquisition department for the construction of the equipment.
Xiaomi and TCL will be interested in the deal
It is said that companies like Xiaomi or TCL are also interested in the acquisition of Honor. Both companies declined to comment on the matter, justifying that the deal requires due secrecy.
It is curious to note the presence of Xiaomi in this eventual business. Chinese technology was one of the reasons why Honor lost its influence in the market, mainly through its sub-brand Redmi.
Huawei will want to focus on top end development
Citing sources close to the matter, Reuters says that U.S. sanctions imposed on Huawei will be one of the reasons for this sale. Things are not easy for Chinese technology, so she wants to channel all her efforts towards the development of top of the range.
Honor, on the other hand, has young people and those looking for a more affordable proposal as its main audience. Apparently, this is not the target audience that Huawei considers to be worthy of its resources.
It remains for us to wait for official information about this business to understand what the future of Honor will be like. The truth is that the brand no longer has the same influence that it had a few years ago in UK, largely because of brands like Xiaomi.
EBox editors recommend: