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All business assets of Huawei's Honor brand acquired by over 30 agents, dealers

2020-November-17       Source: Xinhuanet.com

Over 30 agents and dealers of Huawei's Honor brand have acquired all business assets of the budget cellphone brand, according to a joint statement released on Tuesday.

Honor, a smartphone brand of Huawei Technologies Co, launches its first smart TV called Honor Vision powered by its HarmonyOS in Dongguan, Guangdong province. [Photo provided to China Daily]

Over 30 agents and dealers of Huawei's Honor brand have acquired all business assets of the budget cellphone brand, according to a joint statement released on Tuesday.

"This acquisition represents a market-driven investment made to save Honor's industry chain. It is the best solution to protect the interests of Honor's consumers, channel sellers, suppliers, partners and employees," according to the joint statement released by the agents and dealers.

The acquisition is a multi-win move for the industry, says the statement, adding that all shareholders of the new Honor company will fully support the development of the Honor brand, enabling it to leverage the industry's advantages in resources, brands, production, channels, and services, and more effectively compete in the marketplace.

The change in ownership will not impact Honor's development direction or the stability of its executive and talent teams, allowing the company to continuously consolidate its foundation for success, says the statement.

Since it was established in 2013, the Honor brand has been positioned as a budget cellphone brand that targets young consumers and running as a relatively independent unit under Huawei.

"Honor's suppliers, manufacturers, distributors and channel sellers are all facing significant difficulties. If not handled well, over a million people could lose their jobs. Honor's independence from Huawei is expected to ensure that 'the water will continue to flow in Honor's channel' and saves the phone maker's upstream and downstream suppliers," according to sources close to the deal.

The deal is initiated by over 30 Honor's sellers and distributers and the new Honor company will be completely independent from Huawei. In the future, Honor could welcome more investors, said sources familiar with the matter.

Editor: Ariel

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