Huawei open to Nokia acquisition

by CXOtoday News Desk    Jun 19, 2013

huawei

Huawei, the Chinese telecom company hinted they would be willing to acquire Nokia which can help the latter become one of the world’s leading smartphone makers according to a Financial Times report.

“We are considering these sorts of acquisitions; maybe the combination has some synergies but depends on the willingness of Nokia. We are open-minded,” said Richard Yu, Chairman of Huawei’s consumer business group, ahead of the western launch of its latest premium smart-phone, the Ascend P6, in London.

However, Huawei has not made major acquisitions in the past and sources close to the group claim that no acquisition is on the table in the near future. Yu’s comments underline the company’s rapid foray into the mobile phone market and its ambitions to challenge  competitors Apple and Samsung.Speaking on the subject of the smart-phone market, Yu predicted that very soon the mobile phone market would consolidate to about three or four companies but voiced his opinion on Microsoft’s Windows phone platform used by Nokia as well as Huawei as being“weak”. Huawei has mostly adopted Google’s Android operating system for its smart-phones.“Windows Phones are weak but still require a license fee. That’s not good. Android is free.” said Yu.

He said that the group, once known for its cheap and basic “feature” phones, is  investing heavily in producing the next generation of smartphones technology and aims to be slimmer, lighter, faster and reasonably priced than best selling Samsung phones as well as in wearable smart devices similar to the Google Glass or the rumored Apple watch. Their newest launch the Ascend P6, is one of the slimmest smart-phones on the market with similar specifications with other smart-phones in the market but is priced lower than others.

Huawei is a fast growing company and aims to not only match competitors Apple and Samsung but be the best in the market. The company aims to beat internal sales targets of 55-60 million smartphones this year. The pace of growth is so high that Yu complained about a shortage of component supplies, which has slowed down its manufacturing.