According to information from China, Huawei, which has serious supply problems due to trade restrictions of the USA, will sell Honor for $ 15 billion, at least not to deal with the supply problems of its sub-brand.
Despite the US government’s embargo that started in May 2019, Huawei continued its rise in the smartphone industry for another year with temporary licenses and managed to become the “world’s best-selling smartphone brand” in 2020, albeit for a short time, after the temporary license ended on September 15. had begun a process.
As you know, after the expiration of temporary licenses, Huawei was unable to cooperate with companies such as Samsung and TSMC, which use neither US companies nor US patents. This situation seriously affected the business of the Chinese technology giant, especially the smartphone division, and it was even talked about that Huawei could stop the production of smartphones by 2021.
The US is about to suffer its first big loss after the embargo. According to the information reported, Honor, the price / performance-oriented sub-brand of the Chinese technology giant, will be acquired by the Digital China Group and several initiatives supported by the Shenzhen local government.
Huawei According to rumors, especially with the sale of affordable products Honore also very popular in Turkey will generate revenue of 100 billion yuan. According to sources close to the company, Digital China Group, which will acquire 15 percent of Honor Terminal Co Ltd shares, will be Honor’s largest shareholder. At least three investment companies to be supported by the Shenzhen government will buy 10-15 percent of Honor shares.
Supply problems are the biggest reason Huawei sells Honor
Sources indicate that Honor will continue to retain all of its workforce after the purchase. Also, according to sources close to the company, Honor will go public in the next three years after the acquisition. However, it should be noted that there is no statement from Honor, Huawei or Digital China on the subject yet.
As you can imagine, the biggest reason behind Huawei to sell a successful brand like Honor is the US embargo. While Huawei is currently experiencing difficulties in sourcing parts for its own smartphones, it may make it even more difficult for it to recover from its current crisis, as it is experiencing supply problems for a price / performance-oriented sub-brand. According to rumors, Huawei will announce the acquisition deal on November 15.