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Huawei plans to divest budget phone unit Honor: reports – TechCrunch

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Besieged by U.S. tech sanctions, Huawei could also be trying to shake up its smartphone enterprise that has taken successful after shedding core semiconductor elements and software program providers.

The Chinese language big is in talks with Digital China Group to promote elements of Honor, its low-end, finances telephone unit for 15-25 billion yuan ($2.2-3.7 billion), Reuters reported on Wednesday. 

A Hong Kong-listed agency, Digital China is a by-product from the Legend Group (later Lenovo) and a serious distributor and shut ally of Huawei.

Smartphone gross sales and different consumer-facing electronics at the moment make up the bulk of revenue for Huawei, which started by promoting telecommunications gear within the late 1980s.

The information got here days after a Chinese language tech information blogger claimed Huawei is planning to promote Honor. Revered Apple analyst Ming-Chi Kuo additionally famous in a report that it’s in Huawei’s profit to divest Honor so the enterprise might be freed from commerce restrictions and Huawei will get to give attention to high-end telephones beneath its namesake model.

Sources near Huawei denied the deliberate sale of Honor, Tencent Information reported final week. A Huawei consultant contacted by PJDM declined to remark.

Huawei rolled out unbiased model Honor in 2011 as Xiaomi’s low-budget telephones had been taking China by storm. Like Xiaomi, Honor began out by specializing in on-line gross sales and younger shoppers. BBK Group’s Oppo, Vivo and Realme have since made important inroads into the finances telephone market.

Honor’s model, analysis and improvement capabilities and associated provide chain administration enterprise might be on the market, sources advised Reuters. The tech information blogger stated Honor will function and procure independently after the sale.

Different bidders embrace Xiaomi and TCL, in accordance with Reuters, in addition to Gree and BYD, in accordance with the tech information blogger.

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Rita Liao