Huawei Technologies is in talks with Digital China Group Co and other interested buyers to sell parts of its Honor smartphone unit. The sale price could reach CNY 25 billion (approximately USD 3.7 billion), Reuters reports, citing unnamed sources with knowledge of the matter. Huawei now plans to focus on its higher-end Huawei phones rather than the Honor brand which mainly targets young people and the budget conscious, the sources added.
Details on the exact assets that will be included in the sale are yet to be finalized, but are expected to include Honor's brand, research development capabilities and related supply chain management business, two of the sources said. The deal may be an all-cash sale, one of the sources added.
According to the same sources, Digital China, the main distributor for Honor phones, has emerged as the preferred buyer, but other prospective buyers include Chinese electronics maker TCL and smartphone company Xiaomi.
