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Analyst: Huawei should sell Honor division
08.10.2021 [09:53],
Dmitry Myakin

US Sanctions Affect Huawei’s Business Increasingly. The company is already experiencing a shortage of processors for future smartphones, in connection with which it is forced to look for ways out of the predicament in the event of further deterioration of the situation. One of the most likely scenarios is the sale of Honor’s mobile division, according to renowned analyst Ming-Chi Kuo.

Ming-Chi Kuo is confident that the entire Chinese electronics industry will benefit from the sale of Honor – from the brand itself to the suppliers of components. If Honor becomes independent from Huawei, then it will no longer be subject to restrictions by the US government on the use of American technology. This will help Honor’s mobile business, which now has to focus on entry-level smartphones. The separation from Huawei will also allow the production of premium-class devices.

Mr. Kuo clarified that Honor’s main strength now lies in the value of the brand itself. If the company maintains its reputation and recognition after becoming independent, and strengthens its position in the segment of mid-range and high-end smartphones, it will be able to increase its market share, and not give it to competitors such as Oppo, Vivo and Xiaomi.

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