Chinese company Huawei has decided to sell the Honor smartphone brand. It will be transferred to Shenzhen Zhixin New Information Technology Co., Ltd. After the transaction is completed, Huawei will not own shares or participate in the management of the business.
The company decided to sell the brand because of the serious pressure under several Western countries. It is linked to allegations of collaboration with Chinese intelligence agencies.
Shenzhen Zhixin New Information Technology was created by a consortium of three dozen Honor dealers and suppliers. The deal should remove the brand from the sanctions imposed on Huawei in the United States.
The brand was created by Huawei in 2013 and specializes in low-and mid-price smartphones. About 70 million devices of this brand are sold annually.