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Huawei sells its budget smartphone brand Honor for the tech giant's survival

With the recent sanctions imposed by the US, Huawei Technologies Co Ltd is selling its budget brand smartphone Honor for an undisclosed amount.

According to the Reuters reports, Huawei is selling smartphone brand Honor to a consortium of over 30 agents and dealers, according to a joint statement signed by 40 companies involved in the purchase. After claims of being a 'National Threat' by Washington, Huawei sale's growth slowed down considerably in the third quarter after the US sanctions on the company.

It's a “market-driven investment made to save Honor’s industry chain” and the change of ownership will not impact Honor’s development direction, the statement said. Huawei won't have any share in the new Honor Company. The Chinese tech giant has been under pressure of the unavailability of the technical elements and components for developing mobile phones. The company plans to make a new chip plant in Shanghai after its recent restrictions to utilize US technology.