Chinese manufacturer Huawei has officially confirmed plans to sell the Honor sub-brand. According to Reuters news agency, the negotiation is in advanced stages with a consortium formed by about 30 interested agents.
Rumors of the deal began in October this year, with speculation surrounding a $ 15 billion transaction and a state agent, the Shenzhen government, as the main stakeholder.
The new company should be called Shenzhen Zhixin New Information Technology and Huawei will not be holding shares. At least currently, the manufacturer has notebooks, smartphones and smartwatches in the catalog.
According to Huawei, the sale is an “investment directed to the market to save Honor’s industry chain” without impacting the company’s performance. Competition between low-cost manufacturers is increasingly fierce, not only among brands already strong in the sector, such as Xiaomi and Oppo, but also between newcomers such as Realme.
It is worth remembering, however, that Huawei is also experiencing problems thanks to the political and commercial sanctions applied by the United States. Only recently has it received good news, such as the release to buy chips from Western partners.
Honor is the independent subsidiary of the brand’s most affordable and diverse devices, while Huawei was more focused on premium products. For now, it is not known whether the sale of the company will make the giant launch cheaper products again or even generate a new family of devices in this price range.