UPDATE: Huawei has officially reached an agreement to sell all business assets related to the Honor smartphone division. The updated story continues below:
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Four weeks ago, Huawei reportedly entered negotiations with potential buyers regarding a partial sale of Honor. A month on, the giant has officially reached an agreement.
Huawei is selling its entire Honor smartphone unit
In a statement released earlier today, Huawei confirmed its plans to sell the Honor smartphone business to a new consortium headed by over 30 agents and dealers including China Telecom and several government-backed entities such as the Shenzhen Smart City Development Group.
The latter is rather important and means Honor now has a chance to circumvent the US trade ban, which has significantly impacted Huawei in recent months and ultimately led to today’s announcement.
The consortium hasn’t explicitly confirmed plans to retain all 7,000 employees. However, it claims the sale “won’t affect the stability of its executive and talent teams,” therefore indicating big layoffs aren’t in the pipeline.
