Exclusive: Huawei in talks to sell parts of its Honor smartphone business – sources

HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.

FILE PHOTO: Huawei’s new Honor 20 smartphone is seen at a product launch event in London, Britain, May 21, 2019. REUTERS/Peter Nicholls/File Photo

Embattled Huawei is resetting its priorities due to U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

The deal may be an all-cash sale and could end up smaller, worth somewhere

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Exclusive: Huawei in Talks to Divest Parts of Honor Smartphone Business, Sources Say | Investing News

HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd <000034.SZ> and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.

Embattled Huawei is resetting its priorities in the face of U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

The deal may be an all-cash sale and could end up smaller, worth somewhere between 15 billion yuan and 25 billion yuan, one of the people said.

Digital China, the main distributor for Honor

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Huawei may sell the Honor mobile phone business – analyst, Ming-Chi Kuo predicts

Huawei‘s consumer Business group is faced with a huge challenge that could crumble the brand’s smartphone business, occasioned by the US ban. Already, the company is already running short of supplies for chipsets that would be used on future models. As a result, the company is reportedly looking for contingency plans. Noted TF International Securities analyst Ming-Chi Kuo has released a research report that predicted and analyzed the potential impact of Huawei’s countermeasures against the US ban.Huawei logo

Ming-Chi Kuo pointed out in the report that after a comprehensive scenario analysis of Huawei’s potential countermeasures against the US ban, one of the most likely scenarios is that Huawei sells the Honor mobile phone business.

He believes that if Huawei sells the Honor mobile phone business, it will be a win-win situation for Honor brands, suppliers and China’s electronics industry.

The analyst noted that if Honor is independent from Huawei, the procurement

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