Chinese tech giant Huawei is selling its budget-price Honor smartphone brand to rescue the struggling business from damaging US sanctions imposed on its parent company, the Associated Press reports.
The sale aims to revive Honor by separating it from Huawei’s network equipment business, which Washington says is a security threat, an accusation Huawei denies. It is under sanctions that block access to most US processor chips and other technology.
Huawei Technologies Ltd.’s announcement gave no financial details but said the company would have no ownership stake once the sale is completed. Huawei will retain its flagship Huawei smartphone brand.
The buyer is a state-owned company in Shenzhen, the southern city where Huawei is headquartered, and an Honor retailers group.
NEWS.ru earlier reported that Huawei overtook Apple, Samsung, as a leader in the smartphone market.