- 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
Eero is moving beyond consumers and partnering with internet service providers. The Amazon-owned router company has announced Eero for Service Providers, an offering that includes hardware and software tools for ISPs. It will be available in the US and Canada starting in November, with more features coming in December and throughout 2021. Eero says it’s offering the tools at “attractive price points.”
The platform includes three components at launch. One is Eero Insight, which collects usage data to help ISPs foresee customers’ Wi-Fi issues and address them early. The company estimates that the tool will provide technicians “up to an estimated 30 percent reduction in time spent resolving Wi-Fi issues.”
The second is Eero Secure, a subscription service that can be deployed with the company’s mesh Wi-Fi systems. Customers can use it to block attacks like malware, spyware, and phishing. It also includes parental controls. And Eero is also offering its Eero 6 Mesh Wi-Fi system to ISPs, which supports Wi-Fi 6 and includes a built-in Zigbee smart home hub. The company says that users will be able to manage their internet experience with an “ISP co-branded mobile app” — they can pause their internet service and share it with guests.
Eero isn’t the first manufacturer to release products like this. Comcast’s xFi internet platform also includes a subscription security service that blocks suspicious activity and quarantines devices. (Disclosure: Comcast is an investor in Vox Media, The Verge’s parent company.)
Last week, California Governor Gavin Newson leaned over the hood of a Ford Mustang Mach-E and signed an executive order saying that all new passenger cars and trucks sold in the state must be emission-free by 2035.
The new mandate doesn’t necessarily mean that California car dealers would, literally, sell nothing but fully electric or hydrogen-powered vehicles 15 years from now, several experts say.
That is the goal, though. And it’s not entirely out of the question, said Nick Albanese, a researcher with Bloomberg New Energy Finance.
“I think California’s target is ambitious, but feasible,” he wrote in an email. “Even before this announcement, we forecast passenger EVs to account for 52% of total US passenger vehicle sales in 2035 and 61% in 2040.”
Of course, there are many hurdles to overcome on the road to an emission-free auto market, including a widely available charging infrastructure, affordability, and lots of legal fine points.
With 15 years until the mandate goes into effect, there’s plenty of time for negotiation, and we will likely see Newsom’s goal softened or the deadline extended, said Chelsea Sexton, an analyst who covers the electric vehicle market.
“It will take a few years, literally, for this headline to be clarified,” she said.
Can California legally do this?
The federal government’s Environmental Protection Agency has already publicly challenged Newsom on
Back in January, medical device company Masimo levied a lawsuit against Apple, accusing the company of stealing trade secrets and improperly using Masimo inventions related to health monitoring in the Apple Watch.
Masimo is known for its pulse oximetry devices, and Apple just recently debuted the Apple Watch Series 6 with blood oxygen monitoring capabilities. Following the launch of the Series 6, Masimo has accused Apple of attempting to delay the legal proceedings in order to sell more watches and gain a more dominant share of the smart watch market.
As highlighted by Bloomberg, Apple has not officially responded to the original January lawsuit, instead filing requests to dismiss the trade secret part of the case and to have Masimo patents invalidated. Apple has asked the trial court to put the case on hold until the patent issue is resolved, which could take a significant amount of time.
Apple told the court that delaying the case until a patent review will narrow the issues and “reduce wasted resources.” With no hold, the first hearing on the case will take place in April 2021.
According to Masimo, the potential postponement would allow Apple to “seize on a critical window of opportunity to capture an emerging field,” using its “considerable resources and ecosystem” to capture market share with no regard for Masimo patent technology.
Masimo CEO Joe Kiani said in the filing that Masimo believes Apple’s customers see the Series 6 as a “medical product,” which can “harm consumers” and “reduce [Masimo’s] opportunities to sell truly clinical-grade products to consumers.”
Masimo accused Apple of stealing secret information by pretending to have a working relationship with Masimo and then poaching Masimo employees. Masimo also believes that Apple is infringing on 10 Masimo patents, and says that Apple relied on Masimo technology when