Huawei backtracks from Nokia buyout claims

Huawei backtracks from Nokia buyout claimsHuawei has moved to play down suggestions it is considering making an offer for Finnish mobile giant Nokia.

That after Huawei head of consumer business Richard Yu was quoted as saying the company was very much interested in a deal, but that ultimately the decision would come down to Nokia itself.

Speaking at the launch of the Huawei Ascend P6 yesterday, Yu reportedly said the Chinese firm was “open-minded” about potentially buying Nokia out, saying “the combination has some synergies but depends on the willingness” of Nokia.

Today, though, it seems the position has changed, on the record at least. VP for external affairs Bill Plummer told Reuters that Huawei “has no plans to acquire Nokia”. Nokia itself, unsurprisingly, has refused to comment.

It's not the first time Nokia has been linked with a buyout by a fellow phone maker. In fact, almost exactly 12 months ago we were talking about Samsung potentially lining up a bid.

So would buying Nokia be a good move for Huawei? Partly. Nokia has the kind of pedigree and household name status the Chinese firm clearly lacks, and Nokia's patent portfolio backed by Huawei's financial might could be a tantalising combination.

At the same time, if Huawei is to achieve its stated ambition to be the world's leading smartphone maker, it needs to crack the American market, and if that's the case buying Nokia - a company that has always struggled in the US - makes no sense.

However, no amount of analysis one way or another can change the fact that a Huawei senior executive has gone on record saying a move is possible, and surely wouldn't have done so if there was no truth in it at all.

Via Slashgear

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