Xiaomi and TCL are the main contenders to buy the Honor brand from Huawei
Huawei Plans to sell Honor, Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd and other companies to sell its Honor brand. Among Digital China Group, TCL and Xiaomi are also the main contenders to buy Honor Brand from Hauwei.
The deal could bring Huawei up to 25 billion yuan ($3.7 billion). According to Reuters, Huawei is reconsidering its priorities due to US sanctions. The company wants to focus on its higher-end Huawei phones, not on the Honor brand, whose target audience is young people.
Sale Price of Honor Brand
The assets to be sold have not yet been determined, but may include the Honor brand, research and development, and related supply chain management businesses. The operation could be conducted for cash, and the amount of the deal could range from $2.2 billion to $3.7 billion, one source said.
Digital China, the main distributor of Honor phones, is the main contender to buy Honor, but there are others: Chinese electronics manufacturer TCL and smartphone maker Xiaomi Corp.
Huawei and TCL declined to comment, while Digital China and Xiaomi did not respond to requests from the publication. The Honor brand was founded by Huawei in 2013, but the business is largely independent of the parent company.