Huawei has sold its Honor budget smartphone business to a consortium of over 30 agents and dealers, according to a statement released on Tuesday morning on its official website, reported the South China Morning Post.
The Chinese telecommunications giant will not hold any shares or be involved in any business management or decision-making activities in the new Honor company after its sale to the consortium, Shenzhen Zhixin New Information Technology, according to the statement.
The deal comes after the US imposed tighter restrictions on Huawei in May this year, restricting its access to Huawei’s acquisition of chips made with American software and technology, even from companies outside the US, said the SCMP.
“Huawei’s consumer business has been under tremendous pressure as of late,” the Shenzhen-based company said in the statement. “This has been due to a persistent unavailability of technical elements needed for our mobile phone business.”