Source: Android Central
What you need to know
- Huawei is said to be in talks with a few Chinese companies to sell parts of its Honor sub-brand.
- Digital China Group, TCL, and Xiaomi are apparently interested in acquiring the Honor smartphone business.
- Huawei launched the Honor brand in 2013 to take on the likes of Xiaomi, Vivo, and OPPO in the budget phone segment.
A new report from Reuters claims Huawei is currently in talks with Digital China Group to sell parts of its Honor sub-brand. The deal is likely to fetch Huawei close to 25 billion yuan ($3.7 billion).
According to people familiar with the matter, Huawei is no longer keen on the budget smartphone segment. The Honor sub-brand, which was launched in 2013, is mainly targeted at value-conscious consumers. Since Huawei's smartphone business has been severely impacted by the recent U.S. sanctions in markets outside China, the company now wants to focus on higher-end devices instead.
Even though the assets that will be sold haven't been finalized yet, Huawei is likely to sell Honor's brand, R&D capabilities, as well as the supply chain management business. Digital China, which is said to be the frontrunner, is currently the main distributor for Honor devices. Aside from Digital China, other Chinese tech companies like TCL and Xiaomi are said to be in the running as well.
TF International Securities analyst Ming-Chi Kuo believes that a potential sale of the Honor smartphone business could be a win-win situation for the brand, as well as the Chinese electronics industry. Kuo wrote in a recent research note:
If Honor is independent from Huawei, its purchase of components will no longer be subject to the U.S. ban on Huawei. This will help Honor's smartphone business and the suppliers.
Honor posted less than 5 billion yuan in net profit last year, due to the wafer-thin margins in the budget phone market globally.
Huawei P40 Pro
While it may not have any Google apps or services, the P40 Pro is one of the most impressive Android phones out there when it comes to photography prowess. In addition to the highly capable quad-camera setup on the back, the P40 Pro also has a vibrant OLED screen and a 4200mAh battery.
We may earn a commission for purchases using our links. Learn more.
Cyber Monday headphone deals: Huge discounts on Samsung, AirPods
There's no better time than Cyber Monday to pick up a great set of headphones or earbuds. We've put together a handy list of all of the audio deals out there right now so you can upgrade your gear for less this fall.
Cyber Monday: Get the latest updates on PS5 stock, games, and accessories
While discounts on the console itself won't happen, we'll keep you updated on where your best chances are to find stock this Cyber Monday. Expect solid deals on games, headsets, storage, and more for sure though.
Expand your PS5 storage for less on Cyber Monday
We've been eagerly awaiting Cyber Monday here at Android Central and it's really come up with the goods for PS5 SSD deals so far. With stock running quite low already, it might be smart to pick one up as soon as possible. We'll show you how.
These are the best cases for your Google Pixel 4a 5G
Google's Pixel 4a 5G looks a tad boring in Just Black, but we can fix that! These cases are fun, fashionable, functional, and most importantly, ready to carry your Pixel 4a 5G into the future without any damage.