- A brand new report suggests Huawei is ready to offload Honor to a Chinese consortium for a ~$15.2 billion charge.
- The consortium is alleged to encompass distributor Digital China and the Shenzhen authorities.
- The sale will allegedly embody most of Honor’s belongings and workforce.
Huawei plans to offload its Honor smartphone division to a Chinese-based consortium, in accordance to a brand new report by Reuters. Per the report, citing “people with knowledge of the matter,” a consortium led by distributor Digital China and the Shenzhen authorities plans to buy the model in a deal price ~$15.2 billion.
That huge determine will reportedly embody Honor’s analysis and improvement and distribution models. Notably, the report solely mentions the model’s smartphone division, so it’s unclear if the sale contains Honor’s different product applications, too.
Huawei with out Honor: streamlining its enterprise
News of a possible sale first came to light in October with the likes of TCL and Xiaomi talked about as potential patrons. Regardless of whoever buys Honor although, the sale is reportedly key to Huawei’s market repositioning.
In the midst of the continuing US trade restrictions, Huawei is now setting its sights on “high-end handsets and corporate-orientated” units. Huawei has seen a steep decline in shipments throughout key international markets in 2020. A profitable sale of Honor will go a great distance to instantly recoup a few of the agency’s losses.
For Honor, new possession might open the agency to a possible US ban exemption, however contemplating how a lot of Huawei’s tech is ingrained in the model at current, this appears unlikely. It’s additionally attainable that the US authorities — even the incoming administration — would clamp down on firms shopping for any portion of Huawei-related companies, too. Ultimately, an Honor buy could possibly be a doubtlessly profitable deal however poisoned chalice for the mistaken bidder.
We might not have lengthy to watch for affirmation. The report alleges Huawei might announce the deal as early as Sunday, November 15.
In a request for remark, Honor informed Android Authority that it doesn’t “have any comments on this” for now.