Xiaomi could allegedly buy part of the business of its biggest competitor

Xiaomi could allegedly buy part of the business of its biggest competitor

21/10/2020

Agencies |.- At the end of last working week, a well-known analyst, Ming-Chi Kuo, came up with a possible prediction of the smartphone market, which shocked many of us, but on the other hand, it makes sense. He said US sanctions could force Huawei to sell off part of its business. He specifically mentioned the Honor division, which could easily function as a separate brand.

The technology portal Vosveteit.sk has came up with interesting news about this possible transaction. Specifically, it wrote about the possible sale of part of the Honor subsidiary to one of its competitors. The reason for this sale should be the above-mentioned sanctions. Huawei is reportedly considering its priorities, which should be mainly high-end phones.

According to the published report, the transaction itself is not yet final and it is speculated what it could contain. Vosveteit further writes that a potential transaction should cost the buyer something between 15 and 25 billion yuan (ie 1.5 to 3.1 billion €).

Another potentially "hot" buyer is said to be TCL, which has increased its activity in the smartphone market in recent years. The agency further adds that neither Huawei nor Xiaomi have commented on the subject so far.

WIN-WIN situation?

"If Honor is independent of Huawei, its purchase of components will no longer be subject to the US ban on Huawei. It will help Honor's business and smartphone suppliers,” said Ming-Chi Kuo over the past week.

Whether Xiaomi's potential purchases (as well as whether he is interested in the transaction itself) part of Honor, or the entire company, is in the stars today. However, the question that Xiaomi will have to resolve before a potential transaction is whether this move would put him at risk of US sanctions.

| Agencies

Agencies