UPDATE: Huawei has reached an agreement to sell its Honor smartphone division. The updated story continues below:
Huawei is selling its entire Honor smartphone unit
In a statement released earlier today, Huawei announced a deal to sell its popular Honor smartphone business to a newly created consortium that includes over 30 agents and dealers including China Telecom and several government-backed entities such as the Shenzhen Smart City Development Group.
The latter is particularly important considering the political climate. Recent US trade bans have significantly impacted Huawei in recent months and ultimately led to today’s announcement, but the lack of involvement in the new company means Honor could circumvent the restrictions.
The sale “won’t affect the stability of its executive and talent teams,” per the involved parties. That’s not a guarantee that all 7,000 employees will be retained, but it confirms there are no big layoffs planned.