Sunday, May 26, 2024

Huawei Detached From Honor Under US Pressure

Donald Trump ordered in May to extend the ban on companies in his country from acquiring and using devices made by foreign companies that may pose a “risk to national security.”

Chinese telecoms equipment maker Huawei has sold all of its interests in Honor, the company’s mid-range mobile phone brand, to the Shenzhen Zhixin New Information Technology consortium as a result of the “tremendous pressure” it has been subjected to. recently the Chinese supplier’s business as a result of the supply chain impact of the US veto.

“Huawei’s consumer business has been under tremendous pressure lately. This is due to a persistent lack of technical elements necessary for our mobile telephony business, ”the Chinese giant acknowledged in a statement.

In this way, Huawei has decided to sell all its business interests in Honor to Shenzhen Zhixin New Information Technology with the aim that the brand, as well as its sellers and suppliers, can overcome the difficulties.

Once the sale is completed, Huawei has ensured that it will not own shares or participate in any way in business management or decision-making activities at Honor.

«This movement has been carried out by the industrial chain of Honor to guarantee its own survival. More than 30 agents and distributors of the Honor brand first proposed this acquisition, “said Huawei.

Since its inception in 2013, the Honor brand has focused on the youth market offering phones in the low to mid-range price range, with more than 70 million units sold annually.

The president of the United States, Donald Trump, signed an executive order last May to extend the prohibition to American companies from acquiring and using devices made by foreign technology companies that may pose “a risk to national security”, such as the China Huawei, thus renewing the veto declared a year earlier.

Huawei achieved a turnover of 671.3 billion yuan (86.275 million euros) in the first nine months of 2020, which represents an increase of 9.9% compared to the sales revenue recorded by the company in the same period. 2019. Huawei’s sales revenue growth was thus below the 24.4% increase registered in the same period of 2019.

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