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Huawei decides to sell Honor smartphone brand

Huawei Honor Smartphone: Chinese tech company Huawei has decided to sell its budget smartphone brand Honor. The move is an attempt to save the smartphone brand after it was damaged due to the sanctions imposed on Huawei by the US. Huawei announced the move on Tuesday, and to revive the smartphone business, it will separate Honor from the network equipment and other businesses run by Huawei.To get more latest technology news, you can visit shine news official website.
According to the US, Huawei-run network equipment and some of its businesses pose a threat to security, and while the Chinese company has denied the accusations, it seems that it has decided to not risk Honor. The US has placed Huawei under sanctions which block the company from accessing most of the processor chips in the US as well as other technology.
Without shedding any light on the financial details, the Chinese tech giant said that once the sale is completed, it would not have any stake in the Honor smartphone brand. However, it would still retain its flagship Huawei smartphones.
Honor would be purchased by a government of Shenzhen-owned tech enterprise’s company. Shenzhen is where Huawei is headquartered. Rumour has it that the sale price of Honor could be as high as 100 billion Chinese Yuan, which is approximately 1.13 lakh crore Rupees.
In a statement, Huawei said that Honor’s industry chain has taken the decision to ensure that it survives.
Last year, Huawei was caught between US-China tensions and was placed under sanctions due to its visibility as the first global tech brand from the Asian country. The sanctions were strengthened this year. The two countries have been at odds for long, and the latest feud is based on the US’ suspicion of China using technology to spy and threaten the security with the help of China-based companies.
The US officials have claimed that Huawei could help China in spying, even as the company denied the allegations. Meanwhile, it also sees the technological development supported by the Chinese government as a threat to the industrial dominance by the US.
Security complaints of the US against Huawei are based on the company’s switching equipment for phones and internet companies, and the role the equipment plays in next-generation technology in the telecom industry.