Huawei sells Honor brand in a bid to save Honor's industry chain

(File Photo: Agencies)

Huawei has signed a deal with Shenzhen Zhixin New Information Technology Co., Ltd. to sell all business assets related to its Honor mobile phone brand, according to a joint statement from over 30 agents and dealers of the Honor brand.

The buyers said this is a market driven investment to save Honor's industry chain. Analysts say if Honor is not sold, the challenges faced by its industry chain might result in around a million people losing their jobs around the world. Once the acquisition is complete, Huawei will not hold any shares, according to the statement. 

Established in 2013, Honor is Huawei's low- and middle- end consumer electronics brand aimed at the youth market. Since its establishment, it has been a relatively independent unit under Huawei, and it has no stake in the international 5G competition, according to analysts.