Honor, an entry-level brand, was bought by a consortium of 40 Chinese companies. Huawei was failing to source sufficient electronic components due to the sanctions imposed by the United States.
Chinese telecommunications giant Huawei announced on Tuesday that it had sold its Honor phones to save them in the face of “terrible” tensions caused by US sanctions on its supply chain. The amount of the transaction was not indicated.
Honor, an entry-level brand, was purchased by a consortium of 40 Chinese companies including distributors, agents and other companies whose survival depends on the brand’s survival, Huawei and the consortium said in statements. separated.
Huawei, one of the three largest smartphone makers in the world, said its production of consumer devices “is under tremendous pressure” as the group fails to source enough electronic components due to sanctions imposed by the company. United States. “The sale will help Honor vendors and suppliers overcome this difficult time,” the Shenzhen-based group in southern China said in a statement.
Honor, a brand aimed primarily at young people and on a budget, sells, according to Huawei, some 70 million phones per year. After this sale, Huawei no longer has any action and “is no longer involved in the management of the business or in the decision-making of the new company Honor”, he said.
Huawei is in the sights of the US government, which suspects it of spying for the benefit of Beijing. The military past of the company’s founder, Ren Zhengfei, as well as his membership in the Chinese Communist Party, fueled suspicions about the regime’s influence on the group.
US authorities have taken steps to drive Huawei out of the US market, to deter US companies from collaborating with it, and to cut off its global supply of semiconductor other components. Washington has also stepped up pressure on its allies to ban Huawei’s 5G equipment, citing cybersecurity risks.
Huawei has denied the US accusations. The Chinese group attributes the offensive, of which it is the object, to the desire of the United States to eliminate a powerful competitor.
Posted today at 03:01