Google Completes a Billion Dollar Deal With HTC
Thanks for landing on our website. Today, we’ll be talking about how Google Completes a Billion Dollar Deal With HTC . Google aims to increase its competitiveness in the smartphone market by signing a $ 1.1 billion contract with HTC to acquire part of the company’s smartphone business – a deal that involves some 2,000 HTC engineers and designers for Google will win.
The acquisition of HTC’s research and engineers will allow Google to make serious additions to hardware production. It is clear that this move will provide new technical talent for the production of its Pixel Smartphones. According to TheVerge, Google had already signed a contract with some HTC employees for the already produced pixels and Pixel 2.
While Google still holds a small share of the smartphone market, the goal is among the high-end market leaders. Google seems to hunt Apple’s iPhone as a big brand, with which it can compete in the premium smartphone market until the end of January. However, the market is still wide open to see if the deal will actually pay off.
“To be honest, Apple is doing very well in mature markets,” says Google’s senior vice president of hardware, Rich Osterloh, in an interview with Bloomberg.
Google has followed a similar path with the purchase of Motorola Mobility for $ 12.5 billion in 2012 to achieve success in the smartphone market. However, the campaign was unsuccessful, with Lenovo handing out patents to Google a fraction of the price a year later.
Osterloh has added the new Googlers to the family through the company’s blog. “I am very pleased to have officially concluded our contract with HTC and welcome an incredibly talented team that will work on even better and more innovative products in the years to come,” he said.
The contract with HTC was finalized in September of last year to cover approximately half of the company’s research and design area. With the completion of the business, there are now around 2,000 HTC engineers on Google. “These future Googlers are amazing people with whom we have already worked closely on the Pixel-Smartphone line, and we’re curious to see what we can do together as a team,” commented Osterloh in September.
Osterloh also said that the 2,000 Taiwanese engineers added by HTC to his team are currently Google’s largest engineering site in the Asia-Pacific region. New Google employees are expected to help develop more consumer hardware and a source of leading Google technologies to develop their own smartphone chips, such as Apple.
The contract means that HTC is one billion dollars richer and 2,000 employees easier. We think this deal is not just for Google. HTC is now receiving cash as the company struggles in the smartphone market. The company has already lost its 11 percent Android Market delivery rate to competitors such as Huawei and other Chinese competitors, which accounted for just 0.5 percent of smartphone shipments last June, according to a London-based research firm.
HTC’s plan after this deal is still unclear, but the company will soon launch its next flagship smartphone. HTC may shift its focus to the virtual reality industry as Vive’s VR business is enjoying great success.
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