Analyst Suggests HTC Should Merge With Huawei

We’re sure some of you guys probably know that HTC isn’t exactly in the best financial position right now, although we’re sure that the company was banking a lot of their hopes on the HTC One, which while a good phone in its own right, did not manage to go on to be a commercial success that they had imagined. While we’re not sure what HTC has planned for the future and how they plan to dig themselves out of the mess they are in, one analyst from JP Morgan Securities Ltd has offered an opinion that perhaps a merger with Huawei could be one of the ways HTC could survive in the market today.

Huawei has been known to produce a variety of electronic gadgets, including smartphones, and one of the ways the company has managed to distinguish themselves from the competition would be on price, where Huawei products have typically been marketed as cheaper for the more budget-conscious consumer. According to the analyst, a merger with Huawei would give both companies a larger share of the market due to combined market share, with Huawei sitting at roughly 3%, and HTC at a little under 2%, giving them 5% combined which would put them ahead of the competition such as LG and ZTE. The merger would also give both companies access to resources, technology, and intellectual property which could aid in the development of a newer and better product. Of course this is merely the opinion of an analyst, but what do you guys think? Is this one way HTC could “save” themselves?

Tyler Lee
Categories: Cellphones
Tags: HTC, Huawei