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[Update: Huawei Denies] Huawei is likely to ‘sell’ Honor smartphone business, says analyst
October 9, 2020:
People familiar with this matter have confirmed that the news of selling Honor is not true and it’ll continue to be operated under Huawei. (reports iThome)
October 8, 2020:
Huawei has been abandoned from purchasing U.S. technology with the inclusion in Entity List last year. Under the U.S. restrictions, a well-known analyst has revealed a better way for Huawei to the sidewalk the U.S. curbs.
Ming-Chi Kuo, an analyst at TF International Securities, said one of the most likely scenarios for Huawei is to sell the Honor smartphone business and make its smartphone making subsidiary independent.
“Huawei’s sale of Honor smartphone business is a win-win situation for Honor brand,” says Kuo.
Once Honor becomes independent from Huawei, the purchase of required components will not be affected by the U.S. ban. This will help Honor to grow its mobile sales and supply chain partnerships.
The analyst also believes the separation of the Honor division will help the Chinese tech giant to contribute to the independent and controllable development of China’s electronic industry and it can also help to develop high-end smartphones.
In terms of market size, Honor contributes a big share in Huawei’s overall smartphone market share in China is dominated by Honor smartphones, which helps the company to manage its ranking on the global smartphone market even after U.S. sanctions.
Also, the independent factor for Honor will also increase its development capabilities in the mid-to-high-end smartphone segment with proper marketing. Simultaneously, Honor will also impact the market share of Xiaomi.
(via)
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