Lenovo Rumored to be Considering Acquisition of HTC to Bolster Smartphone Offering
Be that as it may, HTC has seen better days. Much better. HTC built the first ever Android smartphone (HTC Dream, otherwise known as the T-Mobile G1), and from there, the company enjoyed record revenue and profits with each passing quarter. However, Apple (iOS/iPhone) and Samsung (Android) now dominate the smartphone market, while HTC recently reported its first quarterly loss.
HTC in July said it would shift its focus to lower end devices instead of remaining heavily engaged in the high-end market, a place where the HTC One competes. That all goes out the window if the Lenovo rumor turns out to be true. As the story goes, the two are expected to ink a deal in the first half of 2014.
It's an interesting proposition. Lenovo doesn't have much of a smartphone presence in the U.S., and even though HTC is struggling these days, Lenovo knows a thing or two about thriving in rough markets. In addition, Lenovo announced in August that smartphone and tablet sales surged past PCs for the first time.