Honor is a quite interesting sub-brand of Huawei that is totally focused on the young public, in fact, one of the firm’s ambitions is to become one of the 5 largest smartphone manufacturers in the world, top where of course its parent company, Huawei. However, this mission has been complicated in recent months due to the veto imposed by Donald Trump on Huawei, a situation that has also affected Honor.
A few days ago we told you that, according to the analyst, Ming-Chi Kuo, the sale of Honor to another company would allow it to escape the veto of the United States, so they could use Google services again, a situation that has affected the sales of Huawei and Honor in the West, because in this part of the world Google services are essential for users who bet on Android.
Huawei is already in talks with other companies
According mentions Reuters, Huawei is already in talks with different companies (all of Chinese origin) to complete the sale of Honor, which could be closed for 25 billion yuan, which are approximately 3.72 billion dollars, an amount that seems little for a smartphone company.
Likewise, the report indicates that the sale would contemplate that the buyer will remain with Honor’s research and development area, with the division responsible for the management of the supply chain and with the operations of the firm in all the countries where it operates. Exactly for that reason, one of the interested companies that seems to be the one who is leading the talks to close the deal is Digital China Group Co LTD, which is the main distributor of Honor phones.
In addition to Digital China, other companies that seem interested in staying with Honor are TCL and Xiaomi, which also have their smartphone business, in fact, Xiaomi already has several sub-brands in the market such as Redmi and POCO, so another sub-brand could generate more confusion for customers, especially if we consider that Redmi is Honor’s direct competitor, and that although Redmi has never been defined as a sub-brand focused exclusively on young audiences, most of its launches have that focus .
It is not known how advanced the talks are or when they could conclude, but it may be that before the end of 2020 there will already be an Honor buyer, so we will have to wait to see what the immediate future of this interesting brand is.