Huawei sells low-end Honor handset business due to 'tremendous pressure' in supply chain

Consortium of dealers and resellers buys 70-million-a-year handset-maker

Huawei has sold its low-end Honor handset business and all-but admitted the deal was necessary due to US technology export restrictions.

“Huawei's consumer business has been under tremendous pressure as of late,” the company’s announcment opens. “This has been due to a persistent unavailability of technical elements needed for our mobile phone business.”

Huawei has therefore decided to sell the unit to an entity named Shenzhen Zhixin New Information Technology Co., Ltd.

“This move has been made by Honor's industry chain to ensure its own survival,” the announcement says, adding “Over 30 agents and dealers of the Honor brand first proposed this acquisition.”

Rumours of the sale emerged in October 2020 when an potential asking price of $3.7bn was mentioned. By early November a ~$15bn price tag was mooted .

huawei offices in vilnius, lithuania

Qualcomm gets hall pass from Uncle Sam to supply Huawei with mobile chipsets. There's just one catch: It's for 4G only


Huawei has not mentioned the price the unit fetched but has said the transaction will leave it without any shares in the new entity.

The deal unwinds Huawei’s strategy of using the Honor brand to address youthful and budget-conscious buyers, while keeping its own brand for products pitched to other market segments.

Huawei says Honor builds and ships around 70 million smartphones a year, or around five percent of the global market. The brand shifted most units in China.

Shenzhen Zhixin New Information Technology Co. must hope that US authorities do not decide it represents the same national security risks as Huawei, as such a decision would mean it faces the same supply chain challenges that Huawei has admitted became a source of intolerable pressure. ®

Similar topics

Narrower topics

Other stories you might like

  • 381,000-plus Kubernetes API servers 'exposed to internet'
    Firewall isn't a made-up word from the Hackers movie, people

    A large number of servers running the Kubernetes API have been left exposed to the internet, which is not great: they're potentially vulnerable to abuse.

    Nonprofit security organization The Shadowserver Foundation recently scanned 454,729 systems hosting the popular open-source platform for managing and orchestrating containers, finding that more than 381,645 – or about 84 percent – are accessible via the internet to varying degrees thus providing a cracked door into a corporate network.

    "While this does not mean that these instances are fully open or vulnerable to an attack, it is likely that this level of access was not intended and these instances are an unnecessarily exposed attack surface," Shadowserver's team stressed in a write-up. "They also allow for information leakage on version and build."

    Continue reading
  • A peek into Gigabyte's GPU Arm for AI, HPC shops
    High-performance platform choices are going beyond the ubiquitous x86 standard

    Arm-based servers continue to gain momentum with Gigabyte Technology introducing a system based on Ampere's Altra processors paired with Nvidia A100 GPUs, aimed at demanding workloads such as AI training and high-performance compute (HPC) applications.

    The G492-PD0 runs either an Ampere Altra or Altra Max processor, the latter delivering 128 64-bit cores that are compatible with the Armv8.2 architecture.

    It supports 16 DDR4 DIMM slots, which would be enough space for up to 4TB of memory if all slots were filled with 256GB memory modules. The chassis also has space for no fewer than eight Nvidia A100 GPUs, which would make for a costly but very powerful system for those workloads that benefit from GPU acceleration.

    Continue reading
  • GitLab version 15 goes big on visibility and observability
    GitOps fans can take a spin on the free tier for pull-based deployment

    One-stop DevOps shop GitLab has announced version 15 of its platform, hot on the heels of pull-based GitOps turning up on the platform's free tier.

    Version 15.0 marks the arrival of GitLab's next major iteration and attention this time around has turned to visibility and observability – hardly surprising considering the acquisition of OpsTrace as 2021 drew to a close, as well as workflow automation, security and compliance.

    GitLab puts out monthly releases –  hitting 15.1 on June 22 –  and we spoke to the company's senior director of Product, Kenny Johnston, at the recent Kubecon EU event, about what will be added to version 15 as time goes by. During a chat with the company's senior director of Product, Kenny Johnston, at the recent Kubecon EU event, The Register was told that this was more where dollars were being invested into the product.

    Continue reading

Biting the hand that feeds IT © 1998–2022