Huawei evaluates the sale of Honor: a 3.1 billion transaction

Huawei is in talks with Digital China Group and other interested companies to sell parts of its Honor smartphone division, according to rumors, Reuters agency.

The transaction has a potential value of 25 billion yuan (approximately 3.1 billion euros), but it depends on the number of assets that will be sold: the final price could drop to 15 billion yuan. Digital China is the main distributor of Honor phones and already collaborates with Huawei in various activities, including that of the cloud.

Digital China is for now the ‘strongest’ candidate to take over Huawei’s Honor business, but other potential buyers have come forward, including electronics manufacturer TCL and rival smartphone manufacturer Xiaomi.

The assets that will be sold are still to be defined precisely but, according to confidential sources from Reuters, would include the Honor brand, the Huawei’s move follows the strategy that the Chinese company was forced into following the sanctions imposed by the United States: the Shenzhen house intends to focus on its higher-value business of Huawei-branded smartphones, which are high-end, by divesting Instead the one linked to the Honor brand, smartphones aimed mostly at a young audience and with lower-end prices.