In the wake of declining mobile phone sales and several failed attempts at breaking into the tablet market, HTC might finally throw in the towel and find someone else to scoop up the wreckage. According to recent rumors from the Taiwanese site Apple Daily, it looks like HTC might be in talks with Lenovo for a possible acquisition that would close sometime in the first half of 2014. Apparently, these meetings have happening since August 2013.
This actually might not be such a bad thing for either company. Lenovo has carved out a strong position for itself in the PC market and is known for its quality and innovation. The company has been trying to find a way to break into a very saturated mobile market for some time, and HTC’s number three position could be just what Lenovo needs to succeed. It might also provide HTC with the necessary cash flow to increase advertising spending, along with device development, which could ultimately help its revenue go in the right direction.
On the other hand, it’s unclear whether or not Lenovo would want to capitalize on HTC’s pre-existing brand recognition, or whether it would want to start fresh with its own brand. The latter could be a possibility, as Lenovo might simply be after HTC’s pre-existing carrier relationships. We do know that HTC isn’t shy about dropping brands, given its willingness to give up the EVO name on Sprint.
What do you think about the possibility of HTC being acquired by Lenovo? Would you like to see this happen, or do you have reasons for keeping HTC independent?[Apple Daily via Phandroid]