Get Latest updates :
  • Home
  • Register
  • Log In
  • Contact Us
News and Updates around World
  • Automotive
  • Business
  • Education
  • Entertainment
  • Health & Fitness
  • Real Estate
  • Sports
  • Technology
  • Travel
  • World News
  • Automotive
  • Business
  • Education
  • Entertainment
  • Health & Fitness
  • Real Estate
  • Sports
  • Technology
  • Travel
  • World News
No Result
View All Result
News and Updates around World
No Result
View All Result
Home Business

Huawei in talks to sell parts of its Honor smartphone business: Sources

Huawei in talks to sell parts of its Honor smartphone business: Sources
Share on FacebookShare on Twitter

Synopsis

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.

Embattled Huawei is resetting its priorities in the face of U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

The deal may be an all-cash sale and could end up smaller, worth somewhere between 15 billion yuan and 25 billion yuan, one of the people said.

Digital China, the main distributor for Honor phones, has emerged as the frontrunner but other prospective buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp, the people said.

The sources declined to be identified as the talks were confidential.

Huawei and TCL declined to comment. Digital China and Xiaomi did not respond to requests for comment.

The Honor brand was established by Huawei in 2013 but the business mostly operates independently from its parent. It competes with Xiaomi, Oppo and Vivo in China’s highly competitive budget phone market and its phones are also sold in Southeast Asia and Europe.

Kuo Ming-chi, an analyst at TF International Securities, has said that any sale by Huawei of the Honor smartphone business would be a win-win situation for the Honor brand, its suppliers and China’s electronics industry.

“If Honor is independent from Huawei, its purchase of components will no longer be subject to the U.S. ban on Huawei. This will help Honor’s smartphone business and the suppliers,” he wrote in a research note last week.

The budget phone industry operates on thin margins and Honor booked less than 5 billion yuan in net profit on revenue of about 70-80 billion yuan last year, said one of the people.

If successful in its bid, Digital China, which also partners with Huawei in cloud computing and other businesses, plans to finance the bulk of deal with bank loans and is set to secure the financing in the coming weeks, the people said.

Shares in Shenzhen-listed Digital China were up 6% in Wednesday afternoon trade.

(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Also Read

Read More

ShareTweetPin

Related Posts

Must Have Items for Your Cleaning Business
Business

Must Have Items for Your Cleaning Business

by vixus sky
April 19, 2022
‘Travesty of justice’, Muslim Personal Law Board moves SC against HC verdict on hijab
Business

‘Travesty of justice’, Muslim Personal Law Board moves SC against HC verdict on hijab

by Benjamin Obescu
March 29, 2022
CM Yogi Adityanath, Akhilesh Yadav take oath as members of UP Assembly
Business

CM Yogi Adityanath, Akhilesh Yadav take oath as members of UP Assembly

by Benjamin Obescu
March 29, 2022
Shanghai starts China’s biggest COVID-19 lockdown in 2 years
Business

Shanghai starts China’s biggest COVID-19 lockdown in 2 years

by Benjamin Obescu
March 29, 2022
BKU leader Rakesh Tikait receives ‘death’ threat; complaint filed
Business

BKU leader Rakesh Tikait receives ‘death’ threat; complaint filed

by Benjamin Obescu
March 29, 2022

Premium Content

India vs England, 1st Test Day 5: Virat Kohli Says Game Slipped Away In India’s 1st Innings, Backs Shahbaz Nadeem’s Selection

February 11, 2021
NY Times’ Bret Stephens calls out left’s ‘groupthink’ that is leaving them ‘blind’

NY Times’ Bret Stephens calls out left’s ‘groupthink’ that is leaving them ‘blind’

November 19, 2020
26/11 mastermind Hafiz Saeed gets 31 years in jail by Pakistan’s anti-terrorism court: Reports

26/11 mastermind Hafiz Saeed gets 31 years in jail by Pakistan’s anti-terrorism court: Reports

April 9, 2022

Browse by Category

  • Automotive
  • Business
  • Education
  • Entertainment
  • Health & Fitness
  • Real Estate
  • Sports
  • Technology
  • Travel
  • World News

© 2020 Nicardo.com

No Result
View All Result
  • Home
  • Entertainment
  • Sports
  • World News
  • Technology
  • Real Estate
  • Education
  • Travel
  • Health & Fitness
  • Automotive

© 2020 Nicardo.com