On November 17th, a number of companies issued a Joint Statement, stating that Shenzhen Zhixinxin Information Technology Co., Ltd. has signed an acquisition agreement with Huawei Investment Holdings Co., Ltd., and Zhixinxin, as the acquirer, has comprehensively completed the acquisition of business assets related to Huawei sub-brand Honor. After the completion of the sale, Huawei will not hold any equity in new Honor Company.
Why Huawei decided to sell Honor its sub-brand?
The Joint Statement declared that the acquisition is not only a self-help and market-oriented investment initiated by the relevant industry chain of Honor; it is also considered an industry complementarity, in which all shareholders will fully support New Honor Company and allow it to participate in market competition more efficiently. Changes in ownership will not affect the direction of Honor.
Acquirer for Honor
Regarding the acquirer, the Joint Statement stated that Zhixinxin was jointly invested and established by Shenzhen Smart City Technology Development Group and more than 30 Honor agents and distributors. The list of capital contributions includes Tianyin Communication Co., Ltd., Suning Tesco Group Co., Ltd., etc.
Negative effect on Honor
The advantage of Huawei smartphone is high-specs equipment which reflected in its display, Kirin chipset, high-pixel camera, and other materials. At same time, honor has taken this advantage from Huawei, and produced a lot of low-price smartphone by youth style. Once Huawei sold Honor brand in bid to ensure survival, Honor will lose permission using the Huawei’s technology.
Positive effect on Honor
Once Honor has been separate from Huawei, it is possible that Honor will take Google Mobile Services back on their smartphone products. Because Google Company only banned Huawei from using their mobile services, and right now, Honor is not related to Huawei. Therefore, there would be high-possibility that Google Play Store will be pre-installed on Honor smartphone, after Honor and Google Company had an agreement.
Huawei strives to cover common people, and Honor continues to cultivate young people. In other word, the purpose of Huawei in creating its Sub-Brand Honor before, is to dominate the market of young people. So that, using the dual-brands to segment the market with regard to different users at different ages, could be most convenient way.
However, changes always go beyond plans, and Honor should face the future itself. Pre-installation of Google Mobile Services on Honor new smartphone next year, may bring a number of users to Honor.
By the way, as for old Honor smartphone holders, they still need to follow the tutorial to restore the operating system and install GMS.
Christmas is coming soon, have you found the presence of electronic devices this year? Honor may direct you finding best Christmas gift ideas.