Lenovo could be the saviour of HTC in smartphones wars if the Taiwanese company allows acquisition. HTC has been in trouble this year through several issues such as patent infringements and failure of One smartphone to beat Samsung Galaxy S4. If acquired, three possible benefits may bless HTC to get back its feet on the ground.
Lenovo Negotiation to HTC
Rumours are growing regarding Lenovo's interest on acquiring HTC and the Taiwanese company may use the opportunity to regain strength after a series of dire straits. According to GSMArena, a report from Apple Daily in Taiwan suggests that Lenovo has been negotiating with HTC to discuss possible terms of acquisition deals, targeted to be completed on the first half of 2014.
Apply Daily reports that meetings have been held between the two tech companies since late August 2013 but no details are out regarding how much the deal will be worth as of now. As usual, Lenovo and HTC didn't confirm anything regarding buyouts but it is certain that HTC needs help today before everything gets worse for the company and its employees.
HTC told the Wall Street Journal there is no selling happening for Lenovo and both sides declined to directly comment on possible dealings between them.
"The cooperation of Lenovo and HTC could be beneficial and work out well in China's smartphone market," Daiwa Capital Markets analyst Steven Tseng said, cited by WSJ.
HTC suffers intense financial injury including with the failure of HTC One to boost sales and the stake of Beats Audio shares for $265 million.
Benefits if Acquired by Lenovo
Lenovo is a world renowned tech company which gained a strong market share in China with their laptop computers, tablets and smartphones. IBM's personal computer business in 2005 has been acquired by Lenovo which helped the company accelerate its access to foreign market. So if HTC joins Lenovo, what possible gain could they get from it?
1. Increase Market Share
Lenovo stands strong in China and also in other markets around the globe which will help HTC gain access to territories where One smartphones are having trouble with. Lenovo may even help HTC for rebranding or advancing their technologies to the higher level so that both companies may effectively eliminate Samsung in China.
2. Lenovo Tablets
HTC failed to continue to create tablet trends and focused their development on smartphones. Unfortunately, HTC One didn't do much help to boost sales and failed to beat Galaxy S4 or Xperia Z from holding market shares. Lenovo ThinkPad tablets are selling and HTC may get something out of it.
3. Hardware Products
Some Lenovo smartphones use Intel processors while ThinkPads are IBM original products which all paid off for Lenovo. HTC may increase its resources, hardware expansion and R&D through various technological affairs from Lenovo.
Of course, HTC may loss its independence and maybe its brand name if Lenovo buys them out unless both companies agree on retaining each other's identity to create better strategies in conquering Asian markets and across the globe.
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