SHANGHAI: Chinese telecom giant Huawei announced Tuesday it has sold its Honor budget phone line to a domestic consortium in a move it said was necessary to keep the brand alive amid “tremendous” supply chain pressures caused by US sanctions.
Honor has been purchased by a group of 40 companies comprised of agents, distributors and other businesses dependent on the brand’s survival, Huawei and the consortium said in separate statements.
Huawei, which earlier this year became the world’s top mobile phone seller, said its consumer business “has been under tremendous pressure” due to a growing inability to acquire components as the US seeks to cut the company off from the global supply chain.
The sale appears aimed at getting Honor out from under the Huawei umbrella, thereby allowing the brand to source components without being affected by the US sanctions.
“This sale will help Honor’s channel sellers and suppliers make it through this difficult time,” said Huawei, based in the southern Chinese city of Shenzhen.—AFP
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