Huawei disclosed it has sold Honor on 17th November 2020. Honor was the company’s budget smartphone brand until it a consortium of over 30 local city-backed corporations bought it. This includes Shenzhen Expressway, Shenzhen Energy, and Suning.com. The Shenzhen Smart City Technology Development Group supported it with approval from the Chinese government.

The value of the transaction was never clearly revealed, however the reason for its sale was to pave the way for Honor to gain access to American technology following the infamous events leading up to the Sino-US trade war. This has drastically reduced Huawei’s access to US software and hardware technology. “This move has been made by Honor’s industry chain to ensure its own survival,” the company said in a statement.

Now, in an internal memo, CEO and Founder of Huawei, Ren Zhengfei, has confidently informed employees that Honor will regain optimal production levels once it has access to US technology again. Zhengfei reiterated that the Honor deal will be a ‘clean break’ for Huawei from the smartphone brand.

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“After the relentless attacks from the US, we finally realized that American officials weren’t trying to fix us. They were seeking to kill us. Once we’re divorced, there’ll no longer be any under-the-table relations with Honor. We’re handling the separation in an adult manner, and will rigorously adhere to regulations and international norms,” the CEO further said.

On the new platform, Honor will immediately commence production and settle issues affecting its upstream and downstream partners. The US is a technology superpower that has many excellent companies. “You should firmly and boldly work with them”, the memo concluded..

This should clear up uncertainties regarding Huawei’s relationship with Honor after the selling. Zhengfei is optimistic that Honor will regain access to US circuitry and software, and in turn, aid Chinese phones regain their former market share in the smartphone space and beyond.

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