Huawei sells Honor: does the embargo weaken the giant?
New technologies that you can see in Huawei smartphones are currently available from Honor at a later date and at low cost. This is due to the fact that Honor is a subsidiary of Huawei and the company's product lines target discerning customers and users with greater price awareness. As the news magazine Reuters now wants to know, Huawei will sell the subsidiary brand soon.
The news about the sale of Honors by Huawei is currently making the rounds on the Internet. The initiators of the information, which has not yet been confirmed, were contact persons close to the industry who had spoken to Reuters about the sale. Huawei will sell Honor for 100 billion yuan, which is the equivalent of around 15 billion US dollars, to the Digital China group. The company is already one of the main sales companies Honors and will own 15 percent of the shares in Honor in the future. In addition to Digital China, there will also be at least three other shareholders in the future, who will each have 10 to 15 percent of the shares.
Huawei without Google: what are we really losing?
However, the sale will have no consequences for employees and management. The 7,000 employees would be taken over and there are even plans to go public with Honor in the next three years. It remains to be seen whether Honor will continue to benefit from Huawei's technologies. For the tech world, however, the sale of honors is an important sign.
Does the embargo force Huawei to sell?
After all, Huawei is still struggling with the problems of the embargo that prevents the company from trading with US companies. After the last exemption expired a few months ago, new smartphones can no longer be delivered with the Google services that are important for Android. The result is your own solutions that require a lot of getting used to from the user.
These circumstances and the uncertainty about the future of new smartphones are understandable reasons to switch to another manufacturer at the moment. Devices like the Huawei P40 Ultra also came off significantly worse in our test than the previous generation with Google services. The sale of Honors could now be a clear sign that Huawei has suffered massive profit losses due to the embargo and is therefore forced to take countermeasures. As Reuters writes, so far neither Huawei nor Honor have commented on the reasons for the separation. We have also asked Huawei for a statement, but are currently waiting for a response. As soon as we have news for you, we will republish this news in the form of an update.
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