The Huawei founder hailed the sale of the Honor subsidiary as a clean break for the newly independent company that will allow it to compete with its former parent company in the global smartphone market. A deal was reached earlier this month to sell the company to a consortium that includes phone distributor Digital China and local government-backed companies in Shenzhen, and Huawei wants to focus on the premium segment of smartphones. Reach out and release Honor from US sanctions. Honor was launched by Huawei in 2013 and is aimed at budget-conscious consumers with affordable and feature-rich devices. Compete with other Chinese providers Oppo, Vivo and Xiaomi
Huawei Honor Sales
The division accounted for a quarter of Huawei's global shipments, but largely operated independently of its parent company, driving its own brand and product strategy, and maintaining its own distribution channels and research and development operations. Despite this independence, Honor was still subject to the same US restrictions that limit Huawei's access to US technology. This would have severely affected Honor's long-term competitiveness and would have led to significant job cuts. However, as an independent organization, Honor will be better able to compete globally in the mid-range market with other Chinese vendors like Oppo and Xiaomi. In comments meant to be a "farewell," Ren Zhengfei said Honor would resume production imminently and, while he once again lamented US hostility towards Huawei, called for reconciliation with US suppliers. "Under his new leadership, Honor will resume production very quickly and resolve issues affecting its upstream and downstream partners," Ren said in his memo. “The United States is a technological superpower with many large companies. You have to work with them firmly and courageously. Via Bloomberg