TCL to merge with / acquire HTC? *UPDATE*

TCL

HTC has seen better days. What used to be one of the best smartphone makers in the world is now struggling to meet investors’ expectations and stay relevant in the ever competitive mobile market. The Taiwanese company is not only facing Samsung and Apple, but also the emerging players from China like Xiaomi, Meizu and Oppo. So what can they do?

HTC is known for making some rock-solid phones, with its One series getting all the praise in the world. That feat alone makes it a worthy acquisition target for those vendors trying to enter the higher ends of the market.

A new rumor suggests that TCL may be exploring the deal with HTC. They could either acquire the company or merge with them, we’re not sure.

The Shenzhen-based TCL, which we know for their Alcatel One Touch devices, has recently unveiled its shipment figures for August, saying they have moved 6,240,347 units for an impressive 27% year-on-year growth. So yes, they have momentum and shouldn’t have big problems raising enough capital to buy HTC.

However, TCL’s long-term prospects aren’t that bright either. They too have to face rising stars from China, as well as well-established players like Huawei, ZTE and Lenovo. Going to bed with HTC makes perfect sense for TCL, giving them a new high-end brand, know-how and market exposure in the West.

Alas, these sort of deals take time to materialize. Right know all we have are TCL’s Chairman Li Dongsheng post at Weibo hinting an HTC takeover. Whether that will happen is another matter. Nevertheless, we think that some sort of consolidation among the Far East handset makers is coming, like it or not.

UPDATE: HTC has reacted to these speculations saying it won’t be acquired by TCL and plans to remain an independent business.

[Via: GSMdome]

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