Amind’s ongoing Sino-US trade war imposed several trade restrictions on Huawei, and the Chinese giant finally sold its Honor sub-brand of cheap smartphones.
As the financial details are still unknown, it is said that a consortium of more than 30 agents and distributors of the Honor brand and Shenzhen Smart City Development Group Co., Ltd. acquired the company for approximately $15.2 billion.
Now, at the farewell party of Honor, Huawei founder Ren Zhengfei said that he hopes that Honor will become Huawei’s most powerful global competitor, even surpassing the former parent company.
This may be the driving force for Huawei to move forward. According to the South China Morning Post.
He also added that Huawei and Honor should no longer establish contacts, they should strictly follow compliance management and abide by international rules to achieve their respective goals, and everything should be handled separately.
In explaining the reasons for the sale of Honor, Ren Zhiqiang said that the sanctions imposed by the United States threatened millions of jobs and the supplies of the company’s distributors and agents from 170 countries/regions.
He added that Honor will face different problems from any other new company, and called on the company’s employees to accept globalization and learn from companies in the United Kingdom, the United States, the European Union, Japan, Taiwan and South Korea. Honor was established as a sub-brand of Huawei in 2013, Since then, it has become the world’s leading smartphone brand, shipping more than 70 million units per year. According to IDC data, it accounted for 28% of Huawei’s total shipments in the first half of 2020, and Huawei claims to have generated more than $10 billion in revenue.