HUAWEI has confirmed the sale of its HONOR smartphone brand to Shenzhen Zhixin New Information Technology Co., Ltd. is jointly established by Shenzhen Smart City Technology Development Group Co. Ltd. and has more than 30 HONOR brand agents and distributors, all selling HONOR’s business assets and decision-making capabilities. The move is the result of a long battle between HUAWEI and the US government, which has been hurting HUAWEI’s business for more than a year following its sanctions.
With the US government blacklisting HUAWEI for national security reasons and preventing any US-based company from doing more business with them, HUAWEI is struggling to gain a foothold in the smartphone industry. Its smartphone was unable to run Google Play Services, leading to a significant loss in sales, and more recently, HUAWEI had to stop working with TSMC, which manufactured its HiSilicon Kirin chip.
All of these factors contributed to the decision to sell its HUAWEI division. Although the number of official sales was not confirmed, previous reports indicated that HUAWEI had sold to Shenzhen Zhixin New New Information Technology Co. Ltd. for about 100 billion yuan that is about 15.2 billion US dollars. It is not known if HUAWEI will be able to negotiate with the US after the sale.