Chuan Glory will be sold, Digital China is most likely to become the receiver

Huawei’s sale of the Honor brand was rumored to be raging, even if the Honor executives refuted the rumors, it was not stopped, and the receivers were reported to be Xiaomi, TCL and Digital China. Baiming Technology believes that these rumored receivers are the most likely It should be Digital China.

Chuan Glory will be sold, Digital China is most likely to become the receiver

The Honor brand has a leading advantage in the domestic online mobile phone market. Previously, the domestic online mobile phone market rankings given by the market survey agency showed that Huawei, Honor, and Xiaomi were in the top three respectively. The Honor brand accounted for Huawei’s mobile phone market in the domestic market. The shipment volume is about 40% to 50%, which shows that once you purchase the Honor brand, you have the opportunity to become the top five domestic mobile phone companies.

The Honor brand can occupy an advantage in the domestic market. It is inseparable from Huawei’s support. Huawei and Honor brands share Huawei’s technology. After the Huawei brand uses new chips to release mobile phones, the Honor brand will quickly use these chips to launch mobile phones, and the configuration is equivalent. The price of the Honor mobile phone is often a bit lower than that of the Huawei mobile phone, which establishes the cost-effective advantage of the Honor mobile phone.

Chuan Glory will be sold, Digital China is most likely to become the receiver

For the three rumored mobile phone companies, Xiaomi’s mid-to-low-end brand Redmi and Honor’s positioning are similar, and both are aimed at the cost-effective mobile phone market. If Xiaomi buys the Honor brand, it is likely to cause internal consumption of Redmi and Honor. , And the current development of the Redmi brand can be said to be thriving, there is really no need to buy the Honor brand.

TCL once emerged from the group of domestic mobile phone brands around 2003, but now TCL has almost disappeared in the mobile phone industry, and TCL Group has transformed into the Display semiconductor industry, and even TCL Group has split its brand business-TCL TV Going out, under such circumstances, TCL’s acquisition of the Honor brand to enter the consumer market is contrary to its strategy.

In addition, funding is also a major issue. It is said that the price of the Honor brand is between 15 billion and 25 billion yuan. Xiaomi’s mobile phone business has a relatively low profit margin. Therefore, spending a lot of money to purchase the Honor brand business will have greater financial pressure. ; TCL’s current investment is concentrated in the panel business, lack of sufficient funds to invest in the purchase of Honor brand business.

For Digital China, it is different. Digital China is an agent. It has worked closely with Huawei mobile phones before. It is reported that it is one of the top ten global distributors of Huawei mobile phones. With such a level of cooperation, Digital China buys glory. The brand can then take the opportunity to develop its own mobile phone brand, or be the nanny of the Honor brand. After a few years, after the environment has eased, Huawei will repurchase the Honor brand.

Some analysts also believe that due to the inextricable relationship between Digital China and Lenovo, it is also a good choice for Digital China to buy the Honor brand and then resell it to Lenovo. Now Lenovo mobile phones have almost no sense of existence in the domestic market. The ability to acquire the Honor brand can return to the ranks of domestic first-line mobile phone brands.

This means that after Digital China purchases the Honor brand, if it is unwilling to develop the Honor mobile phone, it will have two retreat options in a few years. It can be said that it should be quite appropriate for it to acquire the Honor brand. Of course, for Digital China, how to raise funds to acquire the Honor brand is a big problem. After all, this is a huge transaction of more than tens of billions.

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