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Xiaomi could buy part of its biggest competitor

October 14, 2020

Excluding Apple, the largest international telephony brands can count on enormous firepower based on fragmentation. Let's take the case of Huawei for example, who can rely on Honor (its sub brand) which produces smartphones at a lower cost. The same goes for everyone, even for Xiaomi who has Redmi and POCO. The Lei Jun brand, however, apparently, is not satisfied and could be in negotiations for theown purchase of the Huawei subsidiary, that is Honor. At least this is what was revealed by an investigation by Reuters which is supported by the well-known analyst Ming-chi Kuo.

Xiaomi would be interested, together with other companies, in the purchase of a part of Honor: what are the plans?

For those not familiar with it Ming-chi Kuo is an important analyst, one of the most popular in the market. It is said of him, in reference to Apple, that he can predict the future as much as his predictions are spot on. This time, however, it does not speak of Tim Cook's company but the one that, since 2013, acts as a subsidiary of Huawei. According to a report by Reuters that you find in the source, the Chinese company would have come to the point of sell part of Honor and among the most interested buyers there is also Xiaomi.

According to estimates, the deal could close between1.5 to 3.1 billion € (converted from the yuan, Chinese currency) and Honor would thus be stripped of its research and development division as well as the management of the supply chain. According to the analyst Honor could only benefit from this, as long as it does not sell all of its shares. This way yes would release from the US ban which currently sees it entangled as part of Huawei. What could Xiaomi do to us?

At the moment we don't know. The hypotheses are many: build a third branch, incorporate all the staff to increase resources, invest in a huge new factory without building a new one... in short, there are reasons. Unfortunately at the moment we are not given anything to know as the company has decided to make no statements.