Chinese tech giant Huawei has confirmed that it plans to sell Honor, its smartphone brand targeted to younger Chinese consumers. The company will no longer hold any shares in Honor or be involved in the company’s management or future direction. The new Honor company will be owned by Shenzhen Zhixin New Information Technology which is a union of partners and government-backed businesses.
Huawei has taken the decision to part ways with Honor after facing tighter restrictions from the US when it was put on the US Commerce Department’s entity list earlier this year. As Honor’s products currently rely on Huawei’s technology, the tech giant chose to sell Honor so it didn’t have the same fate. Huawei put the decision down to “tremendous pressure” and “a persistent unavailability of technical elements needed for our mobile phone business.”
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