Rumors have recently surfaced that after the sale of the Honor smartphone business, Huawei's own cell phone business may also be up for sale. The tech giant denied this.
On January 25, Huawei said it has no plans to sell its cell phone business at all and will stick to building the world's leading high-end smartphone brand and strive to provide consumers with excellent product experience and services, according to thepaper.cn.
News had previously circulated on the Internet that Huawei was considering selling its cell phone business in a manner essentially similar to Honor, which would be sold to an enterprise led by a Chinese city's State-owned Assets Supervision and Administration Commission.
The rumor also said that negotiations are nearing completion and an announcement will be made soon.
Due to the US sanctions, Huawei is currently unable to obtain high-end cell phone chips, making its business in trouble. On November 17 last year, Huawei divested its Honor business to let it save itself and survive.
On November 17, 2020, several Huawei supply chain companies issued a joint statement that Shenzhen Zhixinxin Information Technology had signed an acquisition agreement with Huawei to complete the full acquisition of business assets related to the Honor brand. After the sale, Huawei no longer holds any shares in the new Honor.
On January 22, George Zhao, CEO of New Honor, said in an interview with Chinese media that Honor has resumed cooperation with all suppliers as of now, including Qualcomm, Micron, Microsoft, Intel, and MediaTek.
Huawei's consumer business unit, mainly cell phones, accounts for half of Huawei's total revenue.
In the first half of 2020, Huawei achieved sales revenue of RMB 454 billion, up 13.1% year-on-year, with a net profit margin of 9.2%. Of this, consumer business revenue was RMB 255.8 billion.
Huawei sells Honor, more than 30 dealers and distributors as co-acquirers
