Beijing (PingWest)—Chinese telecommunication giant Huawei is in early-stage talks to sell its premium smartphone brands P and Mate, Reuters reports, citing sources with direct knowledge of the matter.
The all-cash sale will include almost all assets including brand, research & development capabilities, and supply chain management, the people said. Huawei could announce it as early as Sunday, says the report.
According to Reuters, Digital China, the major distributor of Huawei, will become a top-two shareholder of the sold-off entity Honor Terminal with a near 15% stake. Honor Terminal was incorporated in April and is fully owned by Huawei.
However, in a statement to Chinese state-owned media China Daily, Huawei said that it has no plans to sell its flagship smartphone brands and remains fully committed to its smartphone business.
"There is no merit to these rumors whatsoever. Huawei has no such plans. We remain fully committed to our smartphone business, and will continue to deliver world-leading products and experiences for consumers around the world," Huawei said.
The Trump administration last year prevented most American companies from doing business with Huawei due to national security considerations, even though the Chinese company has repeatedly denied being a security risk.
Honor-brand smartphones made up 26% of the 51.7 million handsets Huawei shipped in July-September 2020, estimates from Canalys showed. Honor’s products also include laptops, tablet computers, smart TVs and electronic accessories.