The Honor company is no longer a subsidiary of the Huawei Consumer Business Group. Honor, the consumer electronics company founded in 2011 as a brand that operated exclusively online, has been sold to a new owner: Zhixin New Information Technology Co. Ltd.
Who am I really? The new owner of the Honor brand was born from a consortium of over 30 companies also featuring Shenzhen Smart City Development Group Co.Ltd. This is what transpires from a joint statement that took place after the acquisition and its confirmation.
It is reported that Shenzhen Smart City Development Group, a subsidiary of Shenzhen SASAC, holds 98.6% of the shares, while the Shenzhen state-owned Assets Cooperative Development Private Equity Partnership holds 1.4% of the shares. Let's find out the news in detail.
Honor and Huawei: an overview
Those who are a fan of smartphones and technology have always wondered if Huawei and Honor were one identity. The reality is that until 2020, Honor was a brand of the Huawei group. In fact, these two types of brands are very similar in terms of configuration even if they have a large price gap.
The last two models of the respective brands have a very substantial price gap. What is their real difference? It is undeniable that Honor is a sub-brand owned by Huawei Terminal , but its relationship with Huawei mobile phones is not a "father and son", rather it is more like a relationship between "brothers".
In 2011, Xiaomi launches its first low-cost smartphone. To compete with what will later become a giant in smart telephony, Huawei releases a smartphone called Huawei Honor. Although Honor was not yet formed as a brand, this product was a real success for this branch.
In December 2013, the Honor brand officially announced its separation and became a wholly owned sub-brand of the Huawei terminal focused on the Internet mobile phone business. In this sense, we can say that Huawei was a forward-looking company in dividing the two brands. Honor, in fact, focuses its attention on mid-range smartphones and competes with other brands such as Meizu and Xiaomi. Instead, Huawei caters to a high-end population.
Nowadays, however, Honor has definitively detached itself from Huawei and has been bought by another company. In the next few lines, you will find out all the details on one of the most important deals of 2020.
Joint sales declaration: what does it consist of?
The joint sales statement from Honor states that Zhixin New Information Technology, known as the best VPN in the world , will acquire all corporate assets related to the Honor brand. Therefore, once the acquisition closes, Huawei will no longer have any control over Honor.
Details on what the cost of the operation is were not disclosed. However, we can have an idea based on the figure indicated in previous reports: $ 15 billion .
This one that has been adopted is certainly one of the best solutions to protect the interests of Honor's consumers, suppliers, partners and employees themselves. Huawei's decision to sell the Honor brand was dictated by a willingness to save the company after the former parent company was included in the U.S. Department of Commerce's list of companies.
In fact, the White House issued important restrictions that prevented Huawei from procuring ready-made semiconductors to continue their business activity.
The joint statement also revealed that the ownership change will not affect Honor's development direction or the stability of its executives and talent teams. The consortium also says they will follow market rules and compete fairly for the same business opportunities as other agents and resellers.
In addition, the statement said that the shareholders of the new company will fully support the development of the Honor brand to enable it to access the industry's advantages in terms of resources, production, channels and services.
However, if this handover fails, more than a million people could lose their jobs. Since its inception, it has been a relatively independent unit under Huawei and, according to analysts, has no interest in the global 5G competition.
The article Huawei sells subsidiary company Honor: the details of the agreement comes from Tech CuE .