Huawei is selling its ‘Honor’ smartphone brand to raise enough cash so that it can invest further in its own chip-making technology, which would in theory help it to become more self reliant, and depend less on US tech.
‘Honor’ smartphone business was bought by a consortium of over 30 agents and dealers, according to a statement released on Tuesday morning on its official website. No price was given for the transaction.
The Chinese telecommunications giant will not hold any shares or be involved in any business management or decision-making activities in the new Honor company after its sale to the consortium, Shenzhen Zhixin New Information Technology, according to the statement.
Huawei said Honor had been under “tremendous pressure” due to “a persistent unavailability of technical elements”. US restrictions placed on US firms selling equipment to Huawei has made it next to impossible for the Chinese firm to get access to much needed US tech – in particular chips that go into its smartphones.
Honor ships 70 million units annually, according to Huawei.
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