Chinese automaker Geely, which owns brands like Lotus, Volvo and Polestar, could enter the smartphone market. Chinese media reports that Geely is planning to acquire Meizu, a smartphone company that has been struggling lately. Preparations for the merger are currently in progress. If all goes well, Geely wants to release the first smartphones as early as 2023.
Geely has been eyeing the mobile business for some time and has established a profile organization called the Xingji Times. She even brought in some top executives from ZTE, Xiaomi and OPPO. Sources say that Geely has already invested nearly $10 billion in the new company, not counting the potential cost of acquiring Meizu.
Geely is still working on finding a partner to manufacture its smartphones, and most likely it will be Foxconn. However, the device design process and research and development in this area are carried out in-house, which explains the need for the Meizu acquisition.
Meizu currently ships just under a million smartphones a year, a far cry from a peak of 20 million a few years ago. The main problems Meizu faced were limited production capacity and unsuccessful marketing campaigns.
So far, representatives of Geely and Meizu have not commented on the rumors of a possible merger.