Let’s not beat around the bush, HTC isn’t doing so hot right now. While the company has had some success this year with devices like the HTC One, just last week HTC posted its first quarterly loss since the company went public back in 2002.
Despite the current hard times, HTC chairwoman Cher Wang doesn’t seem discouraged. Recently Wang spoke to CNBC where she praised HTC’s CEO Peter Chou and the company’s overall direction, saying that stock performance isn’t the most important aspect. In her words, “The (ability) of the company to be able to stick with (its) vision is the most important.”
Wang also denied the rumors that the company was considering buyout offers, but that’s not enough to stop the rumor mill from turning. According to the Korean publication eToday, HTC is not only actively looking to make a deal, they have already been holding secret meetings with Lenovo since August.
As the rumor goes, Lenovo is interested in taking over HTC’s brand, though no exact terms have been reached just yet. If a deal can be reached, we will supposedly see an official announcement by Lenovo and HTC as early as the first half of next year.
How believable is all of this? Back in August we touched on this subject, concluding that while it’s not impossible, there are political issues that could make such a deal more than a little difficult. Still, the idea does make sense in some ways.
Lenovo has been making smartphones on its own for a while now, but almost exclusively for the Chinese market. Back in May, Lenovo’s CEO Yang Yuanqing did indicate the company has plans to expand its international reach and may even be bringing its handsets to the United States in the near future. If Lenovo wants to be successful out of its home country, using a well known (though declining) brand like HTC might be a good way to do it. A partnership or flat out acquisition would also give the HTC brand better access to the growing Chinese market.
On the other hand, HTC may not be ready to give up the fight just yet. After all, they likely still have a few aces up their sleeves, such as the release of the upcoming HTC One Max. There’s also the ongoing Robert Downey Jr. Marketing campaign, which is designed to bring back positive attention to the company.
We also have to consider that even with profits declining, HTC is still a valuable company, and acquiring it could prove to be very expensive for Lenovo. In short, while the idea of Lenovo buying out HTC doesn’t sound completely insane, we’d take the entire rumor with a hefty grain of salt.
What do you think, would Lenovo be a good fit for carrying on the HTC brand? Or do you feel that HTC’s fight isn’t over just yet?
This makes me really sad. HTC just made the HTC One, which is an instant classic, but HTC is still in trouble regardless.
One hit device doesnt mean a great company. i love the hc one but the vast majority of htc line up is quite average. samsung beats them in price and features anytime which also doesnt help the company. htc makes sense for lenovo however.
I suppose you forgot HTC’s history. If you had looked at the recent article of best android phones ever made, 10 of 25 were HTC.
The GS4 was at least $50 more than the HTC One at launch. How does it beat them in price again? Also, a vast majority of Samsung phones are actually a lot worse. I’ve had the Thunderbolt and the Galaxy Nexus and Droid Charge and besides the battery life of the Thunderbolt which was the first LTE phone for Verizon the quality and internals of the Galaxy Nexus and Droid Charge sucked ass (i..e. radio).
HTC isn’t dead yet. It’s no BlackBerry/RIM catastrophe. Let’s see how the One Max does.
What’s this about “HTC’s brand” ? So just the name ? Not the factories and employees and current phones and designs ? Or patents ?
Brand name sales suck, because people often get suckered into thinking it’s their old, reliable brand, and it’s usually a cheap echo of better times long gone. That said, Lenovo seemed to do good for what used to be IBM’s laptops.
It’s lame that they just made a really cool device, like Ben said, the One, and hearing that they aren’t doing well. I loved my Evo 4G, it was my first Android device. Hopefully people buy their stuff en masse.
I can buy Lenovo but HTC is big Never Again for me.
Was gonna pick up a Lenovo P780 next week, or when its available here, but now it suddenly got distasteful. Anything related to HTC is just too disgusting.
If HTC would just listen to there customers and take a page from Samsung’s play book, they would be alright. The best thing HTC could do moving forward is incorporate bigger batteries and micro SD card slots. I also feel like with their premium build quality they should ditch sense and move towards a more vanilla android experience.
You points contradict each other. Google/ Stock Android principle have moved to only internal storage and no removable battery. You want half of this and half of that. If you have used Sense and compared it to the Google Edition for HTC one you will know that sense is lot better.
If you want a Samsung’s page, just buy a Samsung device!
So what your saying is a manufacturer can’t make a device with a big battery and an SD card slot and a more vanilla version of android without being Google or Samsung…I didn’t say a pure vanilla android experience…I said a more vanilla android experience
Your point? Touchwiz is no closer to AOSP than Sense. Just saying
My point is with Samsung we always get removable batteries and SD card slots…that’s all the Samsung reference I was making…and I would also like to see a closer to stock version of sense…that part has nothing to do with Samsung and touchwiz…justa personal preference
I think that if this is true, then it’s really a good decision for both Lenovo and HTC, but only if Lenovo learns that Sense is miles ahead of its crappy colourful UI.
HTC is waning right now, and if it waits until it ends up like Blackberry their product quality will seriously decline, to the point that no one will want to buy the company anymore.
Lenovo is among the minority of OEMs that actually care about the quality of its products; I do think that if they go ahead with this buyout, it may (important word here: MAY) be a good thing for both companies.
Of course, I would much rather see HTC prosper on its own…I have been a longtime fan of dear old HTC and do not wish to see it go.
Whatever the fuck they do I hope they don’t give priority to Microsoft’s Windows 8 and get sucked in like what happened to Nokia..
It would just be one less phone Id buy. I’ll never own a phone from a communist manufacturer.
Oh my god. This…ignorance…is OVER 9000!!!!!!
I hate Lenovo. They never released the K900 in Peru. :(
HTC has good looking smartphones, but, somehow I don’t like them :/
A fusion? A buyout? Can’t see how that would work :/ Do they have something to complement the other?