Chinese smartphone brand Meizu sold to carmaker Geely as smart vehicles become latest frontier for Big Tech
- Geely’s smartphone subsidiary bought 79 per cent of Meizu from its founder and Alibaba’s Taobao China to bolster the carmaker’s connected ecosystem
- Meizu was once one of China’s most popular smartphone brands but has since lost out to larger rivals like Xiaomi, which is now working on its own electric car
With the acquisition, Geely is taking over a smartphone brand that has been losing relevance in recent years, but whose technology could help the carmaker compete in a market that is increasingly focused on software and services.
“Meizu’s market share in the [mainland] Chinese market has stayed below 1 per cent for several years amid the fierce competition locally,” said Will Wong, a Singapore-based analyst at IDC, noting that the brand’s market share fell to 0.1 per cent in the first quarter this year. “The acquisition is likely to have a higher focus on enhancing Geely’s user ecosystem and its development of intelligent vehicles.”
The SAMR document did not disclose the value of the deal. Alibaba owns the South China Morning Post.
“Mobile phones and devices have quickly evolved into mobile terminals and application platforms, which not only allow users to enjoy the fruits of innovation in the quickest manner possible, they also act as a pathway to greater automotive applications,” Geely said in a statement, repeating comments from last year when it established Xinji Shidai. “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.”
Xinji Shidai has yet to launch any smartphones. Its first one is expected next year, which will be given away as a gift to buyers of Geely’s new high-end sports car, according to a report by Chinese tech media outlet Huxiu.
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When it launched, Xinji Shidai said that it would leverage “Geely’s extensive experience in design, research and development, high-end smart manufacturing, industrial chain integration, vehicle intelligence, software development, and global infrastructure” to cater to the premium smartphone segment.