HONG KONG: Huawei plans to sell its budget-brand smartphone unit Honor in a US$15.2 billion deal to a consortium led by handset distributor Digital China and the Shenzhen Government, according to a Reuters report.

The sale comes as smartphone analysts Canalys and IDC reported China’s smartphone market has plunged around 15 percent, largely due to lower shipments of Huawei devices.

US restrictions on supplying Huawei Technologies have forced the world’s second-biggest smartphone maker to focus on high-end handsets and corporate business.

Analysts also said it indicates little expectation for any swift change in the US perception of Huawei as a security risk, following the election of President-elect Joe Biden.

The all-cash sale will include almost all assets, including brand, research and development capabilities and supply chain management, according to Reuters.