A few days after the disclosures of Ming Chi Kuo, it’s now the turn of Reuters to discuss a possible sale of the Honor brand by its parent company, Huawei. But contrary to the information of the famous analyst, it would rather be a question of selling certain divisions, in this case the management of the supply chain and the infrastructure of research & development.
The amount of the transaction is estimated at 25 billion yuan, or approximately 3.1 billion euros. Digital China, the main distributor of Honor smartphones, is considered favorites although other contenders are in the running, such as Xiaomi or TCL.
Avoid US sanctions?
Honor represented 26% of the Chinese group’s sales in the second half of the year, or around 14.6 million copies, according to research firm Canalys. If the information is confirmed, this is an important turning point for Huawei, but also for Honor, which would thus be freed from American sanctions and could in theory produce new devices with Google services.
“If Honor is independent from Huawei, its component purchases will no longer be subject to the US rules that apply to Huawei“, indicated Ming Chi Kuo. But this remains to be confirmed, the American government could very well adapt its sanctions, as it has done besides for several months.