Huawei has refused to comment on reports that it is set to sell sub-brand Honor in a deal reported to be worth £2.84 billion.
According to Reuters, the Chinese vendor has held talks with a number of companies over a sale.
Honor distributor Digital China Group has been named among a number of companies in discussions with Huawei.
It is thought that Huawei is now looking to focus on its higher-end smartphones.
Any potential deal might also see Honor exempted from the US ban imposed on Huawei and Honor phones since last year.
That could potentially pave the way for Honor phones to once again use Google services.
Last year, Honor ranked fifth for market share in Western Europe at 2.6 per cent – more than Oppo, Nokia and OnePlus according to IDC.
IDC research manager Marta Pinto thinks a deal to sell Honor could be sensible for the brand to help it move away from its Huawei links.
“With Huawei facing several challenges due to international trade wars, it is a logical move to spin off Honor to let the brand follow its own path as a fully independent company,” she said.
“Links to Huawei could damage the value of the brand at the negotiation table, depending on who the buyer is and what strategy it has for the brand.
“In the short term, it would be a positive outcome for Honor to detach from Huawei and ensure access to both the Google Android OS and critical components.”
