Chinese phone maker Honor teams up with key chip suppliers post Huawei split
SHENZHEN (CHINA) – Chinese budget phone maker Honor has joined hands with major chip suppliers such as Intel and Qualcomm after its under-fire parent Huawei Technologies parted ways, it said on Friday.
Huawei had sold Honor to a consortium of 30 of the sub-brand’s agents and dealers in November to help retain sourcing components, which was limited by US sanctions.
As Chief Executive George Zhao launched the View40, Honor’s first phone model after the split, Honor said in a statement it now had its own deals with some tech firm, which include AMD, MediaTek, Micron Technology, Microsoft, Samsung, SK Hynix, and Sony.
Zhao said, “The last five months have been an extremely difficult but meaningful time for Honor. We feel the weight of expectation from industry partners and consumers.”
Under Huawei, Honor’s focus was on the budget end of the phone spectrum, however, it will plan to move into the middle and higher tier market and expand overseas, Zhao said.
The company also would aim for the ‘internet of things’ market, by making use of Huawei’s terminology for connected smart devices, which is controlled by mobile phones.
Nicole Peng, VP of Mobility at Canalys, a consultancy, “They wanted to show they are Huawei reborn so that customers can trust them to have the same quality Huawei was aiming for”.
According to Canalys, Honor made a shipment of 13.3 million phones in the third quarter of last year, making up just over a quarter of Huawei’s total shipments.
According to Zhao, Honor’s roughly 8,000 staff have left Huawei’s offices to a new headquarters also in the southern city of Shenzhen. Around 50% were involved in R&D.
Tightening rounds of US restrictions have restricted Huawei’s access to advanced US chip technology, damaging its phone business. The United States alleges that Huawei’s equipment poses a risk in terms of security, a charge the company refutes.