What you need to know
- Huawei founder Ren Zhengfei has 'urged' its Honor sub-brand to become a competitor after split.
- Huawei is selling the Honor brand to a Chinese consortium led by Digital China and the Shenzhen government for $15 billion.
- Once the deal is completed, Honor will be able to resume sourcing components that are currently restricted by U.S. sanctions.
Earlier this month, Huawei decided to sell its Honor sub-brand to a consortium led by Honor distributor Digital China and the Shenzhen government in a $15 billion deal. The deal is aimed at giving the Honor brand a new lease of life. Huawei founder Ren Zhengfei has now called on Honor to become a competitor after the deal is completed (via Reuters).
As per a speech posted on a Huawei employee forum, Ren has urged Honor employees to strive to topple Huawei. After the ownership change, Honor will no longer have to worry about the U.S. sanctions on Huawei and can resume sourcing components that are currently restricted.
Ren added that Huawei decided to sell the Honor sub-brand as it did not want "millions" of employees at Honor's agents and distributors across the globe to lose their jobs. Honor, which mainly targets the budget and mid-range smartphone segments, made up 26% of the approximately 51.7 million devices Huawei shipped globally in the third quarter of the tear, as per data from Canalys.
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