Huawei is in talks to sell part of its Honor smartphone unit

honor 30 pro plus review rear in hand

  • Huawei is reportedly in talks to sell off parts of its Honor unit.
  • It’s believed that Digital China, TCL, and Xiaomi are interested in the deal.

US sanctions against Huawei mean that the company’s smartphone business has suffered in a big way. Between its crippled in-house chipset division and the lack of Google support, it’s becoming increasingly tough for the firm to keep producing phones.

These troubles extend to its Honor sub-brand too, but Reuters now reports that Huawei is in talks to sell off parts of the Honor business in a deal potentially worth up to 25 billion yuan (~$3.7 billion).

The report, citing “people with knowledge of the matter,” alleges that Honor’s brand, research and development infrastructure, and associated supply chain management business could be sold under the deal. However, the newswire’s sources caution that this hasn’t been finalized yet.

It’s believed that Huawei will focus on higher-end phones due to the US sanctions. Honor has traditionally been focused on young and/or budget-conscious consumers.

Who would do Huawei the honor, then?

Reuters reports that Honor phone distributor Digital China is considered a front-runner for the deal. However, the newswire adds that TCL and Xiaomi are also in the running.

Selling part of Honor to another business theoretically means that US sanctions wouldn’t apply to Honor-branded devices produced as part of this arrangement. It isn’t immediately clear what this would mean for Honor devices released prior to a sale though.

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Furthermore, there’s no guarantee that the US government wouldn’t simply play whack-a-mole and apply sanctions to any company that acquires part of Honor. Huawei and Honor are intertwined in several ways, particularly when it comes to components used and research and development. So extricating large chunks of the sub-brand from its parent company will likely be a

Exclusive: Huawei in talks to sell parts of its Honor smartphone business

By Julie Zhu

HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd <000034.SZ> and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.

Embattled Huawei is resetting its priorities in the face of U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

The deal may be an all-cash sale and could end up smaller, worth somewhere between 15 billion yuan and 25 billion yuan, one of the people said.

Digital China, the main distributor for Honor phones, has emerged as the frontrunner but other prospective buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp <1810.HK>, the people said.

The sources declined to be identified as the talks were confidential.

Huawei and TCL declined to comment. Digital China and Xiaomi did not respond to requests for comment.

The Honor brand was established by Huawei in 2013 but the business mostly operates independently from its parent. It competes with Xiaomi, Oppo and Vivo in China’s highly competitive budget phone market and its phones are also sold in Southeast Asia and Europe.

Kuo Ming-chi, an analyst at TF International Securities, has said that any sale by Huawei of the Honor smartphone business would be a win-win situation for the Honor brand, its suppliers and China’s electronics industry.

“If Honor is independent from Huawei, its purchase of components will no longer be subject to

Eero partners with internet providers to sell its routers to customers

Eero is moving beyond consumers and partnering with internet service providers. The Amazon-owned router company has announced Eero for Service Providers, an offering that includes hardware and software tools for ISPs. It will be available in the US and Canada starting in November, with more features coming in December and throughout 2021. Eero says it’s offering the tools at “attractive price points.”

The platform includes three components at launch. One is Eero Insight, which collects usage data to help ISPs foresee customers’ Wi-Fi issues and address them early. The company estimates that the tool will provide technicians “up to an estimated 30 percent reduction in time spent resolving Wi-Fi issues.”

The second is Eero Secure, a subscription service that can be deployed with the company’s mesh Wi-Fi systems. Customers can use it to block attacks like malware, spyware, and phishing. It also includes parental controls. And Eero is also offering its Eero 6 Mesh Wi-Fi system to ISPs, which supports Wi-Fi 6 and includes a built-in Zigbee smart home hub. The company says that users will be able to manage their internet experience with an “ISP co-branded mobile app” — they can pause their internet service and share it with guests.

Eero isn’t the first manufacturer to release products like this. Comcast’s xFi internet platform also includes a subscription security service that blocks suspicious activity and quarantines devices. (Disclosure: Comcast is an investor in Vox Media, The Verge’s parent company.)

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California’s mandate to sell only zero-emissions vehicles by 2035 isn’t as crazy as critics think

Last week, California Governor Gavin Newson leaned over the hood of a Ford Mustang Mach-E and signed an executive order saying that all new passenger cars and trucks sold in the state must be emission-free by 2035.



a toaster oven sitting on top of a car: A detail view is seen of an Hyundai Kona Electric Highlander ahead of the Electric Vehicle Show 2019 at Sydney Olympic Park on October 25, 2019 in Sydney, Australia. Electric vehicles are being bought in greater numbers in Australia, with 2017 seeing a 67% increase in sales from the previous year. The largest EV test ride event will be open to public on October 26 and 27th. (Photo by Mark Kolbe/Getty Images)


© Mark Kolbe/Getty Images
A detail view is seen of an Hyundai Kona Electric Highlander ahead of the Electric Vehicle Show 2019 at Sydney Olympic Park on October 25, 2019 in Sydney, Australia. Electric vehicles are being bought in greater numbers in Australia, with 2017 seeing a 67% increase in sales from the previous year. The largest EV test ride event will be open to public on October 26 and 27th. (Photo by Mark Kolbe/Getty Images)

The new mandate doesn’t necessarily mean that California car dealers would, literally, sell nothing but fully electric or hydrogen-powered vehicles 15 years from now, several experts say.

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That is the goal, though. And it’s not entirely out of the question, said Nick Albanese, a researcher with Bloomberg New Energy Finance.

“I think California’s target is ambitious, but feasible,” he wrote in an email. “Even before this announcement, we forecast passenger EVs to account for 52% of total US passenger vehicle sales in 2035 and 61% in 2040.”

Of course, there are many hurdles to overcome on the road to an emission-free auto market, including a widely available charging infrastructure, affordability, and lots of legal fine points.

With 15 years until the mandate goes into effect, there’s plenty of time for negotiation, and we will likely see Newsom’s goal softened or the deadline extended, said Chelsea Sexton, an analyst who covers the electric vehicle market.

“It will take a few years, literally, for this headline to be clarified,” she said.

Can California legally do this?

The federal government’s Environmental Protection Agency has already publicly challenged Newsom

Micron yet to regain license to sell to Huawei, pressuring sales

(Reuters) – Micron Technology Inc has not yet obtained new licenses needed to sell its memory chips to China’s Huawei Technologies Co Ltd, which will cut its sales over the next two quarters, company executives said on Tuesday.

FILE PHOTO: Micron Technology’s solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis/File photo

Boise, Idaho-based Micron, one of the world’s biggest makers of DRAM chips, said it had previously obtained licenses from the U.S. government to sell chips for mobile phones and servers from its factories outside the United States to Huawei, which has been the target of U.S. restrictions on chip sales since last year.

Huawei accounted for about $600 million of Micron’s $6.06 billion in sales for the fiscal fourth quarter ended Sept. 3, or just under 10%.

But a new round of restrictions that took effect in September barred sales of any chip made using U.S. tools or software, which rendered Micron’s earlier licenses invalid and halted sales on Sept. 14.

“The manufacturing equipment in those fabs are obviously from U.S.-based companies,” Micron’s chief business officer, Sumit Sadana, told Reuters in an interview. These included Applied Materials Inc and Lam Research Corp.

Sadana said Micron has applied to the U.S. government for new licenses to sell to Huawei but does not yet have them and does not know if or when they will be approved. The company is shifting to selling to other smart phone customers but the shift will take until Micron’s fiscal second quarter to complete.

“As soon as we get the license, we would work with Huawei to determine how we can resurrect the business,” Sadana said.

Micron shares, which were volatile in extended trading, were down