Could Huawei sell its Honor division? In any case, this is what the famous analyst Ming-Chi Kuo thinks, which very often strikes right. He sees here a way for Huawei to save its brand but also to make money very quickly. However, the Chinese brand seems to deny these speculations.
Honor 20. Credits: PhonAndroid
Huawei could sell its Honor brand. This is what the analyst Ming-Chi Kuo, known for his predictions that very often strike right. For him, it is a solution that would benefit both Honor and his parent company.
Huawei has been under a U.S. embargo since 2019 imposed by the Trump administration. It is impossible for him to use components and software from Uncle Sam’s country, or from companies linked to the United States. A handicapping situation for the manufacturer who is obliged to make 100% made in China and which weighs heavily on its finances. For the purpose of the White House here is to asphyxiate the brand, accused of espionage on behalf of Beijing.
A sale that would benefit both brands
By selling Honor, Huawei could therefore raise a large sum of money, especially since according to the analyst, its brand would interest many investors. Such an operation would also be beneficial for Honor. Huawei’s branch is now flying on its own and is no longer a mere “under-brand” offering discounted smartphones with Huawei technologies. Honor is a brand that matters and could build on a strong community to continue on its own in a highly competitive market.
Such a resale should also allow it not to be subject to the same restrictions of the parent company and to use all the components it desires in its smartphones. Like Huawei, Honor is in trouble on this point, logically suffering the American embargo. An operation that would make sense, according to Ming-Chi Kuo, but is unlikely to be on the agenda.
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As GSM Arena notes, employees of the company spoke on Weibo, China’s most popular social network, to refute Ming-Chi Kuo’s claims. If, however, no official response has been provided, it still smells like a failed prediction for the analyst, which is rather rare, it should be noted. Nevertheless, the idea is far from absurd when you look at the situation of the Chinese giant.
Huawei in trouble
The emergence of 5G and compatible smartphones will give a welcome boost to the smartphone market in recession for two years now. It is estimated that more than 1.5 billion 5G smartphones will be sold in 2023, and 1.7 million in 2025. A boost that Huawei will not be able to take advantage of outside its borders.
Digitimes believes that Huawei will see its sales plummet in favour of other long-toothed Chinese brands, such as Oppo, Vivo or Xiaomi, which have been very aggressive in recent years. With such a situation and such competitors, Huawei could thus fall to the seventh place of the best sellers of smartphones in 2021. A blow for a company that was squatting on the podium.
But as the site notes, all is not lost. Japanese companies, such as Sony and Kioxia, have applied for a waiver from the United States to continue working with Huawei. It’s not just about helping a struggling brand, since Huawei is a major partner for Sony in terms of photography. The embargo therefore indirectly puts its business in difficulty, and it is far from the only company in this case.
A glimmer of hope for Huawei which in all likelihood does not seem to be having to sell Honor anytime soon. The situation remains very tense for the manufacturer and things are moving very quickly. If Honor is not for sale today, nothing says it could not be tomorrow.
Source: GSMArena
