Huawei sells Honor to a consortium of agents and distributors in the Chinese city of Shenzhen

Last week the news broke that Huawei would be preparing the sale of the Honor sub-brand to a consortium led by the Chinese government. Now, Huawei has confirmed the sale of Honor it's a statement.

In the statement, Huawei says that its consumer division has been "under tremendous pressure lately", with a "problems of availability of technical elements necessary for the mobile phone business. Honor to become part of Shenzhen Zhixin New Information Technology Co, a consortium of more than 30 agents and distributors from Shenzhen City.

Huawei drops off Honor

Huawei created its Honor sub-brand in 2013, focused on the cheapest terminals and focused on young people. Seven years have passed since then, and the brand distributed around 70 million units a year, according to Huawei in its statement.

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Now, the rumors that had been sounding since October are confirmed, and Huawei has decided to sell all of Honor's business assets to the Chinese consortium Shenzhen Zhixin New Information Technology Co, consisting of 30 agents and distributors, including the Shenzhen government itself. The amount has not been disclosed, although previous rumors spoke of 100,000 million yuan, about 12,800 million euros. When the sale is complete, Huawei will not own shares or participate in any business management or decision-making of Honor.

Among the reasons given by Huawei to sell Honor are the difficulty of the company to obtain components for mobile phones such as processors and the "tremendous pressure" generated by the US veto. Huawei claims that this decision has been made by Honor's industrial chain to ensure its own survival, after it was proposed by more than 30 agents and distributors.

Statement The statement from the Zhixin New Information Technology Co. Ltd consortium

In the statement of the Chinese consortium Zhixin New Information Technology Co. Ltd, it is added that this decision is "the best solution to protect the interests of consumers, channel salespeople, suppliers, partners and employees, without there being any change in the direction or stability of your executive team.

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