Sunday, November 29, 2020

Huawei CEO Encourages HONOR Brand To Compete Against Former Parent Company After Split

 


Huawei has made it known earlier this month that it has sold its subsidiary brand HONOR to a new entity known as Shenzhen Zhixin New Information Technology. According to a report by Reuters, company founder and CEO Ren Zhengfei expressed hope that the sub-brand will aim to progress further without its former parent company.

In a farewell note posted by the CEO on a Huawei employee forum, Zhengfei says that he expects HONOR to become the company’s biggest competitor after the departure. “Toppling Huawei should become your slogan for motivation,” he added. Both Huawei and its founder believes that the parting would allow HONOR to resume sourcing components as well as continue to develop and sell its products, thus ensuring its survival.


Prior to the handoff, the sub-brand was also heavily affected by US sanctions that have been issued against its former parent company. This resulted in the limited production of the HiSilicon Kirin chips and other necessary components that are required to manufacture products from both brands. “We don’t have to drag innocent people into the water just because we suffer,” the CEO wrote in the note, referring to the split.

Suffice to say, it would be interesting to see what HONOR has to offer to consumers as a standalone brand and competitor to Huawei in the near future. Especially with the fact that its products used to be considered the budget-friendlier option when compared to the those sold by its former parent company.




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