On October 8, analyst Ming-Chi Kuo said Huawei is likely to sell its Honor brand to decouple it from its core business and save it from US sanctions. In part, this would be similar to how ByteDance sells TikTok in the US to an American company to avoid blocking the service.
Huawei has denied Ming-Chi Kuo’s speculation. According to her representative, the Honor brand will not be sold and will remain with Huawei.
The site ITHome, which published Ming-Chi Kuo’s statement, has deleted the article, and Huawei employees are looking for publications based on it on the social network Weibo and leaving comments that Honor remains under Huawei’s wing.
The logic expressed by Ming-Chi Kuo is quite understandable. The Honor brand is very successful, but its relationship with Huawei is hampering its development. Since spring 2019, Huawei has been under sanctions in the United States over allegations of spying on users in favor of the Chinese government.
Huawei is prohibited from cooperating with US companies and organizations in other countries using US components and technologies. As a result of this ban, Huawei, for example, cannot license Android with Google services. The company has to install on Android smartphones with its own services, and at the end of this year, Huawei and Honor smartphones will have Huawei’s own operating system, HarmonyOS.
The sale of Honor allowed this brand to be separated into a separate business, to which the US authorities will have no complaints. Honor smartphones could be made from American components, and they would have Android installed with Google services.
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