Rick Osterloh senior vice president of hardware at Google, has announced that Google has signed an agreement with HTC to acquire it’s Pixel division, and not the entire company as was previously rumored for the past weeks.
In a blog post Rick explained that “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. With this agreement, a team of HTC talent will join Google as part of the hardware organization. These future fellow Googlers are amazing folks we’ve already been working with closely on the Pixel smartphone line, and we’re excited to see what we can do together as one team. The deal also includes a non-exclusive license for HTC intellectual property.”
The deal will cost Google $1.1 billion and will result in 2000 of HTC’s employees moving over to Google.
The competition among smartphone makers is fierce, Apple and Samsung currently dominates the market, leaving every other manufacturer battling for what’s left. HTC is among the smartphone companies that have been struggling to keep afloat which pretty much makes this Google deal more of a lifeline for them.
Google and HTC have had a very long friendship, the very first Android smartphone was the HTC Dream, formerly known as the T-Mobile G1. Google and HTC made the Nexus One, the Nexus 9 tablet and more recently the first Google Pixel smartphone. For the past few years HTC’s mobile business has been struggling due to fierce competition and Google could not afford to have HTC fail, especially now that they have been focused on making their own Pixel smartphone.
What will HTC Do Next
After the announcement of the deal HTC has said that they will continue to be a part of the smartphone business and will even be releasing a next flagship smartphone in 2018. This is very short term and many have doubts whether or not HTC will be able to remain competitive for long after such a huge loss to their smartphone division. The money earned from this deal will solve HTC’s immediate cash problems and should put the company in a comfortable position to rethink their future goals.
Google’s Plans For The Future
Android’s first commercial version Android 1.0 was released back in September of 2008, this means that 2018 will be the tenth anniversary of Android and this is going to be a big deal for Google. With the release of the first Pixel smartphone last year, Google has been placing allot of focus on creating its own hardware hence the acquisition of HTC’s employees. This means that they have something big planned for the 10th anniversary of Android and will be working very hard to create something special.
Google is also thinking very long term and we should expect to see them release their very own Google Pixel smartphone for years to come.