HTC R&D team

In recent events, Google Buys out decade-long partner HTC’s Research & Development team responsible for design and engineering behind Pixel phones launched just last year. Flashback to early days, HTC and Google have achieved quite a few milestones including a first-ever Android smartphone T-Mobile G1 (Also known as HTC dream).

In a widely-suspected deal, Google has acquired the expertise, new skills in home and intellectual property from HTC leaving them free to manufacture their smartphones and focus on VIVE and other latest technologies.

“We’re excited about the 2017 lineup, but even more inspired by what’s in store over the next five, 10, even 20 years. Creating beautiful products that people rely on every single day is a journey, and we are investing for the long run. That’s why we’ve signed an agreement with HTC, a leader in consumer electronics, that will fuel even more product innovation in the years ahead.” – Rick Osterloh, Senior VP, Google Hardware.

This is not the first time that Google has tried to buy resources following their dream of integrating hardware and software in the house. Earlier striking a deal with Motorola with the same intentions, Google couldn’t keep it afloat and sold it off to Lenovo for 1/10th of the price they acquired the company for.

Now, our question is would the deal be profitable or another loss for Google?

Let’s take a quick look

Why it looks profitable?

> Setting up its own hardware team would have led to same (even more) financial input from Google.

> Being long-term partners, HTC and Google already work closely and they have delivered promising products like HTC Dream (First-ever Android Smartphone), Nexus One, Nexus 9 and Google Pixel, to name just a few.

> Google has made a smart move with acquiring intellectual property, new HTC talent and an opportunity for future innovation.

> HTC has the expertise to provide a more streamlined supply chain for future Google Hardware.

> HTC gets a financial freedom that means more sources to invest in latest technologies and concentrate on their drowning Smartphones range.

“This agreement also supports HTC’s continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency, and financial flexibility. HTC will continue to have best-in-class engineering talent, which is currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year. HTC will also continue to build the virtual reality ecosystem to grow its Vive business, while investing in other next-generation technologies, including the Internet of Things, augmented reality and artificial intelligence.”

Why does it look like another loss for Google?

> HTC continues to grow in wearable technology market with its innovative Vive Business. Google may as well be funding a strong future competitor.

> HTC and Google have been partners for more than a decade now. However, with this required financial flexibility, HTC may be able to bring in the big guns with its new flagship phone currently in development.

> This deal may be another mistake for Google like their past deal with Motorola.

So folks, that’s my take on Google’s new initiative with long-term partner HTC. What do you think the future holds for both the companies in terms of growth and technology.

Share your thoughts with us now.

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