Automotive company Geely, owner of the Volvo, Lotus and Polestar brands, is directing its attention to the competitive mobile phone market.

International sources indicate that the group may acquire Meizu - a smartphone company that has been around for almost 20 years, but is not performing well lately.

Currently, Meizu is delivering just under a million units per year, which is nowhere near the peak of 20 million several years ago. The main issues on Meizu's front are limited production capacity for OIS modules and unsuccessful marketing campaigns.

Geely is now conducting due diligence while looking for a production partner. Nevertheless, there are already indications that its first smartphones will reach the public next year, 2023.

The Chinese company has had its eye on the mobile business for some time and has created a separate entity called Xingji Times dedicated to this business. The company has hired some key executives from ZTE, Xiaomi, and Oppo to help in its efforts.

Geely has already invested almost $1.5 billion in this new company, not including the potential costs of acquiring Meizu.