No, Google isn’t buying HTC. For those of you who don’t know already, Google will be acquiring HTC’s Pixel smartphone division for a $1.1 billion price tag. Google’s Senior VP Hardware and former president of Motorola, Rick Osterloh made this announcement recently. So what does this mean for the 2 companies? Will we see major upgrades in Google’s hardware lineup? Here’s what we know so far.
What’s Google up to?
Looking back, this isn’t the first time Google had made a major investment in the smartphone business though. Back in 2011, they bought out Motorola for $12.5 billion, albeit for different reasons. Nevertheless, the $1.1 billion deal will see about 2,000 from HTC’s team on board Google’s hardware division. Additionally, this deal will also come with a non-exclusive license for HTC’s intellectual property. So in fact, this is more of a talent acquisition rather than the usual resource acquisition.
All of this simply means one thing. Google is getting serious about hardware, specifically its Made By Google lineup. Just last year, the company unveiled their Pixel smartphones along with the DayDream VR Headset, Google WiFi, Google Home, etc. Talking about this year’s lineup Rick Osterloh stated, “We’re excited about the 2017 lineup, but even more inspired by what’s in store over the next five, 10, even 20 years”. So its fair to say we can expect some interesting things from Google in the hardware domain.
What will happen to HTC after the deal?
Despite losing about one fifth of its workforce to Google, HTC will continue to remain independent in terms of its own smartphone business. CEO of HTC, Cher Wang went on to state in the press release, HTC’s commitment towards their own lineup up of products while moving forward with the Google partnership. According to HTC, the company is actually working on its next flagship phone, following the success of the U11.
“This agreement is a brilliant next step in our longstanding partnership, enabling Google to supercharge their hardware business while ensuring continued innovation within our HTC smartphone and VIVE virtual reality businesses.”
But this isn’t the first time the smartphone manufacturer has worked together with Google. The 2 companies have a decade long history behind their partnership. This includes HTC Dream, the first Android smartphone to come out to the commercial market back in 2008, and Google’s Nexus One.
The agreement is indeed an interesting development. But don’t get too excited thinking you’ll see a Pixel phone with something like HTC BoomSound anytime soon. It’s likely that we’ll still see the same devices. But who knows what the future holds. So here’s us hoping to see the best of what’s to come.
So what are your thoughts on this? Do you think the deal is the right call? Let us know what you think in the comment section below.