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new Delhi14 hours ago
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Last year, the global smartphone market was ranked No. 1 in sales.
- The deal between Huawei and Schengen has been done for about $ 15.2 billion.
- 7,000 Honor employees will also be transferred to Shenzhen
The impact of the ongoing tension between Chinese companies in America is now visible on the Chinese company Huawei. Huawei has sold its sub-brand Honor smartphone business. The company has also confirmed this. The company is busy protecting the brand’s existence by selling its budget smartphone business.
A buyers consortium reported that it has acquired Huawei’s Honor smartphone brand. The buyers included more than 30 Chinese agents and dealers of the budget brand. Let us know that Huawei has been facing a struggle for its business under the US sanctions for the last two years.
Company sold for $ 15 billion
Honor business assets are being sold to a company based in China, Shenzhen Xixin New Information Technology Private Limited. According to reports, the deal between Huawei and Shenzhen has been done for about $ 15.2 billion (100 billion yuan). This deal will help Honor’s channel sellers and suppliers overcome this difficult time.
In the US, Huawei was prohibited from doing business with any US company due to the introduction of Honor smartphones in the sanctions.
The company said in one of its statements, “Once sold to Honor, Huawei will not have any shares in it. Huawei will not be involved in its business management in any way. Neither will Huawei have a decision regarding the new Honor Company The company has taken this step to maintain the existence of the company or to keep it running smoothly.
Loss caused by american ban
Huawei has been facing US sanctions for the past two years and both Huawei and Honor have suffered significant losses since business with US companies such as Google and Qualcomm were denied. The Trump administration has banned all Chinese companies related to essential technologies such as chipsets and software used in their smartphones and 5G telecommunications equipment. They believe that this threatens national security. Please tell that Huawei was the largest company related to 5G telecommunications.
The company was launched in 2013
Huawei launched the Honor brand in 2013. The company used to launch budget and midrange smartphones under this brand and in the last 7 years, Honor made a strong hold with 70 million users in the market. Now 7000 employees of Honor will also be transferred to Shenzhen.
Backward in global market
In the global smartphone market last year, Huawei sales were at number-1. This time Samsung beat him. Recently, according to an International Data Corporation (IDC) report, Korean company Samsung’s share in the global market has increased by 22 percent in August. At the same time last year, Huawei has been at the top position, this time in second place. Huawei’s market share fell to 16% in August from 21% in April.
According to IDC and Canlis, Samsung has already topped the July-September quarter. At the same time, Huawei has been ranked second for global smartphone sales.