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Huawei sold Honor, which accounted for ~40% of its smartphone sales in 2018 and about a quarter in 2019.
And this is also a complete sale: Huawei “ will not hold any shares or be involved in Honor’s future business management or decision-making activities after its sale”.
This is no doubt a disruption to Huawei’s consumer business strategy.
After briefly overtaking Samsung as the #1 smartphone company in the world in the second quarter this year, Huawei managed to maintain the #2 spot for now.
Without Honor, Huawei might need to struggle to keep its current spot.
However, this is a “strategic” move.
With US sanctions, Huawei cannot secure enough components to support both Huawei and Honor brands.
So the “strategic” move to let go of one will not only allow Huawei to focus its existing resources on building the other brand, but also gives Huawei additional resources (the sales proceeds) to push...