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Briefing: Struggling smartphone maker Meizu to raise $14.5 million in funding
Ailing Chinese Phone Maker Meizu to Get Over USD14.5 Million Bailout – Yicai Global
What happened: Chinese smartphone maker Meizu will raise more than RMB 100 million ($14.5 million) from the municipal government of Zhuhai in the southern Chinese province of Guangdong, where the company has its headquarters. The investment comes amid moves by the Zhuhai government to spur growth in the development of novel technologies.
Why it’s important: Started as an MP3 and MP4 device maker in 2003, Meizu shifted focus to smartphones in 2006. However, the firm has since been struggling to keep up with intensifying competition from its Chinese peers like Xiaomi, Oppo and Huawei. Due to financial difficulties, Meizu has resorted to mass layoffs over the past two years. The company’s downfall is reminiscent of embattled Chinese smartphone maker Smartisan. Smartisan also received help from a city government. In 2017, it moved its headquarters to the southwestern city of Chengdu after receiving RMB 1 billion funding from the city’s local municipality.