Huawei allegedly wants to consolidate its own smartphone business and as a result sell its subsidiary brand Honor. The news agency Reuters reports, citing internal sources. Promising negotiations are therefore ongoing with the Digital China holding, the current main distributor of Honor smartphones.

Other potential buyers are the competitors TCL and Xiaomi. According to Reuters , the takeover should be around 15 billion to 25 Billions of Chinese yuan cost between 1.9 billion and 3.2 billion euros.

US sanctions cause Huawei crisis Due to the US sanctions, Huawei hardly gets any mobile processors and memory for smartphones. The semiconductor subsidiary HiSilicon can no longer order systems-on-chip (SoCs) from the chip order manufacturer TSMC, Samsung and SK Hynix have also discontinued trading relationships and local chip order manufacturers such as SMIC only offer outdated process technology with comparatively low capacity.

So far, Huawei and Honor have largely been able to develop their smartphones with comprehensive technology. The popular Honor 20, for example, uses a similar substructure as Huawei’s P 30 with the same mobile processor HiSilicon Kirin 980. The Honor model gets a cheaper housing and cameras without Leica cooperation. Without your own SoCs, co-development between the two parts of the company is now more difficult.

According to Reuters , Huawei is therefore concentrating the available resources on its own superiors