Zhejiang Geely Holding Group (ZGH) is reportedly planning to buy Chinese smartphone maker Meizu Technology in a bid to expand its footprint in mobile devices as well as accelerate the development of services linking up vehicles and communication.
According to Nikkei Asia, local media reports that Geely is apparently is discussions with Meizu over a deal. While ZGH – which has Geely Auto, Geometry, Lynk & Co, Zeekr, Volvo Cars, Proton, Lotus, LEVC and Farizon Commercial Vehicle under its umbrella – said that it will not comment on internal decisions, it did say that it is looking to establish a foothold for its recently launched smartphone business.
Last September, the company announced that chairman Eric Li (Li Shufu) had established a smartphone company called Hubei Xingji Shidai Technology in Wuhan, together with other investors. The new entity is thought to be recruiting talent from Xiaomi and other big smartphone makers, but acquiring Meizu would instantly bring much-needed expertise into the business.
Founded in 2003, Meizu is a mid-tier smartphone manufacturer located in Zuhai. The company, which started by making portable music players before branching into smartphones, is known as a smaller version of Xiaomi. At its peak, Meizu sold over 20 million of its smartphones, which are known for their affordability and functionality, but sales in recent times have reportedly dropped to around a million units.
As it strives to develop self-driving vehicles, ZGH has been pouring resources into communications, with an eye on integrating that technology into cars. Adding smartphones to Geely’s product portfolio will help in the creation of a seamlessly connected ecosystem, Li had intimated last year.
“There is a close connection in technologies within intelligent vehicle cockpits and smartphone software technologies. The major trend in the coming future is to create user ecosystems across borders and provide users with a more convenient, smarter, and seamlessly connected multi-screen experiences,” he said. The company is also building a network of satellites to provide highly precise GPS navigation data to guide autonomous vehicles.
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