Lenovo has made it clear it wants to make smartphones, but they haven't been able to branch out of China. But things are about to change if a new rumor is to be believed. If the rumor is true, then Lenovo is in talks with HTC leadership for a possible acquisition. The report also adds that Lenovo has been in talks with HTC since August and the terms include keeping the HTC brand name intact.
If the deal goes through Lenovo will have direct access to international markets, and would be able to capitalize on HTC's good name and strong partnerships in the US and European markets. For HTC it means survival. Its no secret that HTC reported its first ever quarterly loss while Samsung reported record profits from its Galaxy S4 sales, even though the HTC One was on top of every reviewer's list.
Its not the first time Lenovo is trying something like this, last time around in 2005, the company acquired the personal computer division of IBM and made a name for itself as a PC manufacturer internationally. Could Lenovo save HTC from the downward spiral that's already begun? If any company can, it would be Lenovo and its a far better choice than dual-booting Windows Phone and Android on the same smartphone. If HTC is to remain afloat in this cut-throat segment and become a challenge to Samsung, it needs big bucks, a huge marketing budget and more RDJ.
