Huawei wants to sell the Honor sign. The buyer should be a distributor and local government of the city of en-en. The transaction could free Honor from US sanctions, so it would be able to succeed in markets outside it.
Honor has been a daughter of Huawei since 2013. It appears on the market independently, either in the Czech Republic’s own distributor, but otherwise it is closely connected with the parent company. And the development of Honor should be independent, so the similarity and similarity of its product with Huawei models are obvious. In addition, Huawei reports its own sales with the sale of Honor together.
Honor is thus subject to American sanctions in the same way as to the parent company. Smartphones cannot use Google services, which severely limits their market share outside the home. Recently, both signs must have problems with the supply of systems, which is subject to embargo.
If the sale took place, Honor would get rid of this problem. The coincidence is that the worldwide distribution is not as controversial in the downstream markets as Huawei itself.
The sale was reported by the Reuters agency, but it must be added that there was speculation about it in two and then the transaction Huawei Ashes. Huawei should collect 100 billion jan (339 billion K) for Honor. It should be acquired by a consortium led by the distributor of these devices, Digital China, and the government of the city of en-en.
Fully for sale pichz at a time when restrictions from the United States forced Huawei to switch to expensive models and offers for businesses. This suggests that Huawei did not expect the US government to quickly change its view of Huawei as a security risk, one source said.
Honor refused to come out first. Huawei, Digital China and the en-en city government did not respond to enough comments. The sale should include all assets, including signs, research and development and supply chain. Huawei could announce the agreement on Sunday. Even after the sale, Honor has the right to keep the current manager and approximately 7,000 employees. Within t years, the company could also enter the stock exchange.
According to an estimate by the research company Canalys, Huawei sold 51.7 million phones in the third quarter, of which Honor accounted for 26 percent of these sales. Honor manufactures laptops, tablets, smart TVs and electronic accessories. According to one source, the company last year generated a profit of six billion yuan (over 20 billion K), revenues reached about 90 billion yuan (almost 306 billion K).