Huawei sells Honor smartphone brand amid ‘tremendous pressure’

Huawei has sold off its Honor smartphone brand to Shenzhen Zhixin New Information Technology after experiencing “tremendous pressure,” the company said Monday.

In a news release, Huawei said the sale will “help Honor’s channel sellers and suppliers make it through this difficult time.” Huawei will not hold any shares or be involved in any business management or decision-making activities in the new Honor company once the acquisition completes.


Qualcomm granted license to sell 4G chips to Huawei


Huawei tiered its smartphone business into two brands. The value-oriented Honor brand offers the highest value, while phones with the Huawei brand focus primarily on the high-end with cutting-edge features.

In its 2019 financial report, Huawei reported that the two brands collectively shipped more than 240 million smartphones in 2019, a 15 per cent increase year-on-year, of which 6.9 million are 5G smartphones.

But the business suffered under the impact of the COVID-19 pandemic and tightened U.S. sanctions. According to IDC, Huawei lost the top spot of worldwide smartphone sales to Samsung in Q3 2020. The report noted that Samsung overtook Huawei after shipping 80.4 million smartphones this year, capturing 22.7 per cent of the global smartphone market. Huawei now sits at 51.9 million units sold in 2020 with a global market share of 14.7 per cent, a 22 per cent drop year over year.

“This move has been made by Honor’s industry chain to ensure its own survival,” wrote Huawei’s news release.

Since the U.S. sanction against Huawei began in 2019, Huawei has lost several key business partners including Google and TSMC. It’s unclear whether Honor’s separation could help it circumvent the myriad of restrictions.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Tom Li
Tom Li
Telecommunication and consumer hardware are Tom's main beats at IT World Canada. He loves to talk about Canada's network infrastructure, semiconductor products, and of course, anything hot and new in the consumer technology space. You'll also occasionally see his name appended to articles on cloud, security, and SaaS-related news. If you're ever up for a lengthy discussion about the nuances of each of the above sectors or have an upcoming product that people will love, feel free to drop him a line at [email protected].

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now