It has been rumored for some time that Huawei might be considering offloading Honor. The noted analyst Ming-Chi Kuo already suggested it earlier this month, and now a report from Reuters has quoted various sources stating that talks are going ahead in regard to such a move. Although Digital China is mentioned as the main prospect for a sale, both Xiaomi and TCL are also revealed as potential Honor buyers.
Selling Honor could be seen as a smart move for Huawei. Obviously, the company has had issues thanks to the US-China trade conflict, which in turn will likely stunt further growth for the budget-oriented offshoot. By selling Honor to another electronics-based firm, the parent company would be giving its sub-brand the opportunity to flourish in markets that it is currently locked out of.
As well as allowing Honor to grow as part of another company, the cash injection would certainly help Huawei shore up its defenses in the domestic market. Reuters reports that the deal could be worth up to 25 billion yen (US$3.73 billion) for Huawei. Any of the trio of companies mentioned would be a good home for Honor: Xiaomi could market the brand in a similar manner to Redmi, TCL has already worked alongside (or owned) noted names such as BlackBerry and RCA, and Digital China has connections with Lenovo.
Reuters & Gizmochina & GSMArena
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