In this news, we discuss the Huawei looking to sell Honor, Xiaomi is interested in buying.
Huawei plans to sell part of its Honor smartphone business in a deal that could bring in CNY 25 billion (around Rs 27,251 crore). The company is grappling with business issues outside of China that emerged after the US ban, which is why it no longer appears keen to continue its Honor phone business which targets affordable price segments, unlike the company. Huawei’s high-end phone business. Interestingly, Xiaomi – Huawei’s biggest rival – could end up buying an Honor company.
Huawei is in talks with Digital China Group and other suitors to sell a fraction of its Honor phones business, according to a Reuters report. The Honor brand focuses on budget conscious customers. In India, Huawei pitted Honor against Redmi, Realme and Motorola which are popular in this price segment. Not just smartphones, Honor has started selling its laptops, tablets, and audio products in India at affordable prices, but Huawei doesn’t seem interested in taking this business forward.
Huawei has yet to finalize the assets it will sell for the Honor brand, but these could include the Honor brand, the research and development arm and associated supply chain management activities, the report says. citing people familiar with the subject. Huawei is looking for an all-cash sale that could fetch a lower amount, between CNY 15 billion and CNY 25 billion, according to the report.
Digital China has become the top runner in this deal. It is the main distributor of Honor phones in China. But there are other potential buyers who could bid on Honor’s business, including Chinese electronics manufacturing company TCL and its biggest rival, Xiaomi. But nothing is confirmed on who is making inroads with Huawei as part of the Honor trade deal.
Huawei, Xiaomi, Digital China and TCL declined to comment on what is going on in Honor’s business.
Honor launched in 2013 because Huawei wanted to reach younger, more budget-conscious customers.
- Huawei plans to sell part of its Honor business in China.
- Honor is a budget-focused brand focused on young people and new phone buyers.
- Xiaomi is said to be one of the potential buyers of the Honor business.