- Huawei is in talks with Digital China Group and other buyers to sell parts of its Honor smartphone business, Reuters reported.
- The deal could be worth up $3.7 billion, a person familiar with the matter told Reuters.
- The Chinese tech giant, facing heavy US sanctions, wants to concentrate on its high-end Huawei phones from now on, sources said.
- Other potential buyers include smartphone maker Xiaomi and TCL Technology, the report said.
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Huawei is in talks to sell parts of its Honor smartphone business in a deal which could fetch up to 25 billion yuan ($3.7 billion), Reuters reported.
Huawei, which faces heavy sanctions in the US, wants to step away from developing its low-cost Honor phones and instead concentrate on high-end Huawei devices, according to people familiar with the matter.
Digital China Group, the main distributor for Honor smartphones, is the frontrunner to land the deal, the people told Reuters.
It is competing with smartphone manufacturer Xiaomi Corp and Chinese electronics company TCL Technology, they said.
Honor’s brand, research and development capabilities, and its supply chain management business could be included in the deal according to two of the people.
One of them said that the deal could be an all-cash sale, worth between 15 billion yuan ($2.2 billion) and 25 billion yuan ($3.7 billion).
Huawei was put on the US’ Entity List in May 2019. This means that American companies are banned from doing business with Huawei, and can only trade with it if they get special permission from the Trump administration.
Digital China, TCL, and Xiaomi did not immediately respond to requests for comment. Huawei declined to comment.
- Huawei is reportedly in talks to sell off parts of its Honor unit.
- It’s believed that Digital China, TCL, and Xiaomi are interested in the deal.
US sanctions against Huawei mean that the company’s smartphone business has suffered in a big way. Between its crippled in-house chipset division and the lack of Google support, it’s becoming increasingly tough for the firm to keep producing phones.
These troubles extend to its Honor sub-brand too, but Reuters now reports that Huawei is in talks to sell off parts of the Honor business in a deal potentially worth up to 25 billion yuan (~$3.7 billion).
The report, citing “people with knowledge of the matter,” alleges that Honor’s brand, research and development infrastructure, and associated supply chain management business could be sold under the deal. However, the newswire’s sources caution that this hasn’t been finalized yet.
It’s believed that Huawei will focus on higher-end phones due to the US sanctions. Honor has traditionally been focused on young and/or budget-conscious consumers.
Who would do Huawei the honor, then?
Reuters reports that Honor phone distributor Digital China is considered a front-runner for the deal. However, the newswire adds that TCL and Xiaomi are also in the running.
Selling part of Honor to another business theoretically means that US sanctions wouldn’t apply to Honor-branded devices produced as part of this arrangement. It isn’t immediately clear what this would mean for Honor devices released prior to a sale though.
Furthermore, there’s no guarantee that the US government wouldn’t simply play whack-a-mole and apply sanctions to any company that acquires part of Honor. Huawei and Honor are intertwined in several ways, particularly when it comes to components used and research and development. So extricating large chunks of the sub-brand from its parent company will likely be a
By Julie Zhu
HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd <000034.SZ> and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.
Embattled Huawei is resetting its priorities in the face of U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.
The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.
The deal may be an all-cash sale and could end up smaller, worth somewhere between 15 billion yuan and 25 billion yuan, one of the people said.
Digital China, the main distributor for Honor phones, has emerged as the frontrunner but other prospective buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp <1810.HK>, the people said.
The sources declined to be identified as the talks were confidential.
Huawei and TCL declined to comment. Digital China and Xiaomi did not respond to requests for comment.
The Honor brand was established by Huawei in 2013 but the business mostly operates independently from its parent. It competes with Xiaomi, Oppo and Vivo in China’s highly competitive budget phone market and its phones are also sold in Southeast Asia and Europe.
Kuo Ming-chi, an analyst at TF International Securities, has said that any sale by Huawei of the Honor smartphone business would be a win-win situation for the Honor brand, its suppliers and China’s electronics industry.
“If Honor is independent from Huawei, its purchase of components will no longer be subject to
For Honor will receive enhancements on next-gen consoles, Ubisoft has announced. The PS5 and Xbox Series X/S versions of the game will play at higher resolutions at launch, and a framerate boost is due in December, too.
At launch, the Xbox Series X and PS5 will be able to play For Honor at 4K resolution through backwards compatibility. On Xbox Series S, the game will be playable at 1080p. This is not a dedicated next-gen version, as such, but the current-gen version will hit the highest resolutions it can.
Player profiles, purchases, and inventory will also carry across to next-gen, meaning that you will be able to migrate fully over to your new console at launch without fear of leaving anything behind.
In December, an update will also enable 60 FPS gameplay for all next-gen systems, including the Series S. The game has previously had a locked 30 FPS framerate across all consoles, so this is a major bump.
A single new screenshot of the game running on a next-gen system was also released, and you can view it below.
The Xbox Series X and S will be available globally from November 10, while the PS5 begins its launch rollout on November 12. All of these systems will be backwards compatible with previous generation games.
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