According to TF International Securities analyst Ming-Chi Kuo, Huawei is considering selling part of its business. She wants to get rid of the Honor brand, under which smartphones, tablets, fitness bracelets, headphones and other gadgets are now produced.
Ming-Chi Kuo says the sale of the Honor brand will have a positive impact on Huawei, Honor, the Chinese economy, electronic component suppliers and device users. This deal will allow Honor to be separated into a separate business, to which the US authorities will have no claims.
After the sale of Honor, the range of the brand could expand significantly. The new owner will also release flagship devices that can compete directly with Huawei’s products. At the same time, Huawei will no longer have anything to do with Honor.
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.