Meizu was one of the first smartphone makers in China, predating the founding of Xiaomi.
(Image credit: Meizu)
The deal is still in progress and Geely is doing due diligence, the report said, adding that the purchase price is unknown as the deal is not yet closed.
Meizu was one of the first smartphone makers in China, having been founded before Xiaomi.
In the last two years, annual shipments of Meizu phones have fallen to about 1 million units, far below the peak of more than 10 million units shipped, 36kr said, citing cell phone supply chain sources.
Geely is the first Chinese car company to enter the cell phone manufacturing sector at a time when phone makers are angling for the auto industry.
The cell phone company founded by Geely Holding Group Chairman Eric Li signed a strategic cooperation agreement with Wuhan Economic and Technological Development Zone on September 28, officially announcing its entry into the cell phone sector, which it announced in late September last year.
The company, called Hubei Xingji Shidai Technology Co Ltd, is headquartered in Wuhan Economic and Technological Development Zone and aims to make high-end smartphones to serve the global market, according to a press release sent to CnEVPost.
Xingji Shidai is positioning itself in the premium segment of the smartphone market by giving full play to Geely's extensive experience in design, R&D, high-end smart manufacturing, industrial chain integration, vehicle intelligence, software development, and global infrastructure including its planned low-orbit satellite network, Geely said.
"Mobile phones and devices have quickly evolved into mobile terminals and application platforms which not only allow users to enjoy the fruits of innovation in the quickest manner possible, they also act as a pathway to greater automotive applications," Li said.