Chinese smartphone maker Huawei is selling its youth-focused budget brand Honor. Huawei said Honor had been under “tremendous pressure” due to “a persistent unavailability of technical elements”.
US government sanctions have restricted supplies to Huawei on the grounds that the firm is a national security threat.
Huawei said it would not hold any shares or be involved in managing the new Honor company.
“This sale will help Honor’s channel sellers and suppliers make it through this difficult time,” the Chinese telecommunications giant said in a statement
Huawei said it will sell Honor to Shenzhen Zhixin New Information Technology, a new company set up for the acquisition.
The company is a consortium of more than 30 agents and dealers of the Honor brand, and according to Chinese media, also includes the State-backed Shenzhen Smart City Technology Development Group.
Huawei gave no indication of the sale price.