Huawei gets brazen, says it would buy Nokia, finds Windows Phone too expensive [Update]

File this under "Did they just say that?"

In an interview with the Financial Times, Richard Yu, chairman of Huawei'due south consumer business organisation group, said that the company would exist open to buying Nokia to heave their smartphone sales, especially in non-Asian markets where the Chinese OEM is yet facing some challenges.

Cnet interprets some of Yu's comments every bit suggesting that if Huawei were to purchase Nokia, Windows Phone itself may be up for reconsideration. The reason is price: Windows Phone still has a license fee, whereas Android is "costless". We're non confident that Huawei would do such a thing, fifty-fifty if they were to purchase Nokia, but it's clear they don't have much religion in the Microsoft OS either.

All of this is quite fascinating, especially since Huawei is expected to release the Ascend W2 in the coming weeks, sporting Windows Telephone viii. But when Microsoft'southward partner is saying this publicly, information technology's not exactly a vote of confidence:

"Whether Windows Phone [will exist] successful is hard to say – it has a very modest market place share. [Windows Phones] are weak but still require a licence fee. That's not skillful. Android is free."

But is Nokia selling?

Of form this the complimentary-market and companies can't actually just buy other companies unless they are willing to be sold. Well, pretty much. Starting time off, nosotros should notation there is zero indication that Nokia is actually looking for a suitor to purchase them. While occasional rumors pop up, they are always unfounded and currently there is just no evidence that Nokia wants to sell.

That'south a problem for the patently bouncy Huawei, since if Nokia doesn't want to sell, information technology complicates things. Simply there is such thing as a hostile takeover, in which Huawei tin can bypass Nokia's management and become right to the investors with a straight offer for buy. While very difficult to pull off, if the investors are unhappy with Nokia'south direction they could opt for the Huawei deal—particularly if Huawei throws a lot of money at them, which is oft how such deals work.

Unfortunately, some of Nokia'southward investors are upset and have even been quite song most it. Information technology's far from clear though that they are in a majority position of have whatsoever sway over the other investors, but if Nokia doesn't commencement gaining meaning market share, the people property the money could get antsy.

Would Microsoft let it happen?

Here'due south the matter: Huawei seems to exist walking proudly, proverb headline grabbing things like buying a company that is non up for sale and scrapping its main Os, but in reality we see little chance of that happening.

For 1, we don't think Republic of finland, who plays a role in that company, would let a Chinese firm walk in and buy what is essentially 1 of that country's prized possessions. That'due south not to say they could ultimately forbid it from happening, simply that things would get messy (especially once you bring in the European union into the mix).

Adjacent upwards is Microsoft. While MSFT has no intention of acquiring Nokia—there'southward just no value in doing so when they're getting everything they desire at present—it doesn't mean they would allow their most cherished OEMs just fall into some other OEM's hands. More so since Huawei hinted that they would and then kill Windows Phone for Android, destroying whatsoever momentum Microsoft has built up in recent months.

Because of those reasons, we call back Huawei is just talking. Heck, a lot of OEMs would pick up Nokia if they could—merely their patent portfolio would be worth it, never listen their talented engineers and design teams. But in that location are quite a few insurmountable barriers, in our opinion, between Huawei's dream and reality.

But hey, we're sure Nokia is flattered.

What do you think?  Audio off in comments!

Update 4:45PM ET: Huawei is now claiming that they have "no plans" to buy Nokia to Reuters. It's an odd argument since technically, y'all can't have plans to buy a company that's non for auction anyhow. To us, it sounds like Huawei is backpedaling a chip, as their desire to buy Nokia has not been challenged. They're just stating that aught is in the works, which we already knew.

Source: Financial Times (paywall); via Cnet; Cheers, Michael M., for the tip!

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Source: https://www.windowscentral.com/huawei-gets-brazen-says-it-would-buy-nokia

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