Honor could soon get its Android license back. The Chinese brand, which is free of Huawei, is exempt from US sanctions initiated in 2019. In this context, the firm would again be allowed to install Google’s applications and services, including the precious Play Store, on the smartphones in its catalog.
Huawei has just announced the resale of its subsidiary Honor to a consortium of some 40 Chinese companies, Shenzhen Zhixin New Information Technology. The deal is accompanied by the transfer of 7,000 employees from Huawei’s offices to Shenzhen Zhixin New Information Technology. Most employees will simply have to sign a new contract. The deal, valued at 12.8 billion euros, is mainly aimed at freeing Honor’s teams from American pressure.
In May 2019, an executive order signed by Donald Trump blacklisted Huawei. Under the pretext of protecting American national security, the government banned the manufacturer from the United States. De facto, Honor himself found himself blacklisted and excluded from the U.S. market. Both firms have been banned from collaborating with U.S. companies or using technology from the United States.
Related: Huawei to launch its own chip factory in China to circumvent U.S. sanctions
Coming soon to 5G Honor smartphones with Play Store preinstalled?
Like its parent company, Honor was quickly denied android license. Without this license from Google, the brand is no longer allowed to pre-install Google Mobile Services on its smartphones. Specifically, the brand’s new smartphones have been released on the market without Google Maps, YouTube, Gmail or the Play Store. To download apps, Honor users must go through APK or App Gallery, the shop developed by Huawei. Similarly, Honor has integrated HMS (Huawei Mobile Services) into its subsidiary’s Magic UI overlay of its subsidiary’s smartphones.
Freed from Huawei, Honor is theoretically able to file an application in order to recover its Android license. Honor is no longer blacklisted, there is no reason why Google refuses to return its license. To ensure that its former subsidiary is no longer under pressure, Huawei states that it no longer holds any shares and “will not participate in any business management or decision-making activities in the new Honor company”. Honor and Google have not yet commented on the matter.
In the same vein, Honor is again allowed to trade with firms that rely on U.S. technologies. In particular, the firm must be able to order 5G smartphone chips from Qualcomm. For its part, Huawei still does not have the right to buy SoC 5G from the American smelter. Despite a relaxation of restrictions, the Chinese group has to settle for 4G components.
In theory, everything seems to be in order for Honor following the assignment. Nevertheless, the Chinese brand will now have to produce smartphones without relying on the technologies, software expertise or innovations developed by Huawei. Although Honor has several research and development laboratories, it is right to question the evolution of the brand. “It is not easy to separate from Huawei. Research and development of software and hardware is expected to be slowed down. Honor is just an independent brand and lacks technology,” said an Honor employee, whose comments were reported by the Financial Times.
Towards new sanctions against Honor?
Moreover, Honor is not yet drawn from the clutches of the United States. Following the sale, Honor is essentially owned by a consortium owned by the Chinese government. The city of Shenzen is thus one of the shareholders of the coalition. Arguing that Beijing risks placing backdoors in the brand’s products, the U.S. administration could again blacklist Honor. Independent of Huawei, Honor remains in the crosshairs of the American authorities given its proximity to the Chinese government.
For the time being, and in the absence of official information, these are still only theories. To reassure its users, Honor issued a statement on Sina Weibo, the Chinese social network. The brand assures that Honor customer service is not affected by the sale. Similarly, Honor customer accounts will continue to work. Finally, the brand is committed to ensuring the software tracking of smartphones running on Magic UI. We’ll tell you more as soon as possible. While you’re waiting for more information, please comment on Honor’s resale in the comments below.
Source: Financial Times
