Huawei sells Honor business to consortium of agents, dealers

Its consumer business took hit from an unavailability of needed technical elements.

Huawei Investment & Holding is selling all of its smartphone brand Honor to Shenzhen Zhixin New Information Technology, a consortium of over 30 agents and dealers, the company announced.

The company said that its consumer business has been "under tremendous pressure" due to a persistent unavailability of technical elements needed for its mobile phone business.

This move was made by Honor's industry chain with hopes to ensure the brand's survival. "This sale will help Honor's channel sellers and suppliers make it through this difficult time," the company added.

Once the sale is complete, Huawei will no longer hold any shares or be involved in any business management or decision-making activities in the new Honor company.

Since its creation in 2013, the Honor brand has focused on the youth market by offering phones in the low- to mid-end price range. The brand has since been shipping over 70 million units annually.