Huawei confirmed plans to sell all of its Honor business assets to domestic consortium Shenzhen Zhixin New Information Technology Co earlier this month, blaming US sanctions.
Huawei founder Ren Zhengfei admitted at a company employee forum that the sale was necessary because of the smartphone unit being “under tremendous pressure due to a persistent unavailability of technical elements needed”.
“Wave after wave of severe US sanctions against Huawei has led us to finally understand certain American politicians want to kill us, not just correct us,” Ren Zhengfei said.
Ren Zhengfei added Huawei could overcome the difficulties, but it had taken the decision to sell Honor as millions of its employees and distributors would lose their jobs if sales channels dried up.
Ren Zhengfei wants Honor to become Huawei’s biggest competitor after their “divorce”, and says Honor’s employees should be motivated by wanting to topple its former parent company. That’s a long way from being achievable, at least for now, as Honor smartphone sales made up only about 26% of Huawei’s total in Q3.