SHENZHEN (CHINA) – Honor, the budget brand smartphone unit of Huawei is to be sold to a consortium of over 30 agents and dealers as part of efforts to sustain it, said the Chinese firm and the dealers.
The deal was struck in the backdrop of the US government sanctions restricting the supplies to Chinese firms, citing national security threat.
On Tuesday, the consortium came out with a statement announcing the deal, adding that it will be made through a new firm, Shenzhen Zhixin New Information Technology.
In the new Honor firm, Huawei will not have any shares, said the statement.
In a statement, Huawei said its consumer business has been facing “tremendous pressure” because of the “persistent unavailability of technical elements” needed for its handset business.
“This move has been made by Honor’s industry chain to ensure its own survival,” Huawei said.
