Alibaba enters Chinese smartphone market with Meizu investment

Hangzhou, China – Alibaba Holding Group Inc. is bolstering its mobile commerce position by purchasing a $590 million minority stake in Chinese smartphone manufacturer Meizu. As a result of the investment, Alibaba and Meizu will collaborate to integrate Meizu’s hardware and Alibaba’s mobile operating system.



Alibaba Group will provide Meizu with resources and support in the fields of e-commerce, mobile Internet, mobile operating system and data analysis with the aim of developing Meizu’s smartphone ecosystem. Alibaba Group’s online shopping marketplaces will also become distribution channels for Meizu’s smartphones and other devices.



Meizu only held about 1% of the Chinese smartphone market in the third quarter of 2014, but analysts are predicting it may have doubled that share in the fourth quarter. Alibaba will be able exert a larger amount of control with its undisclosed holding it Meizu than it would with a stake in a larger smartphone provider. It is expected that Alibaba will use the investment to quickly scale app stores and other mobile channel offerings, and may invest in other Chinese smartphone manufacturers, as well.



“The investment in Meizu represents a significant expansion of the Alibaba Group ecosystem and an important step in our overall mobile strategy as we strive to bring users a wider array of mobile offerings and experiences,” said Jian Wang, CTO of Alibaba Group.