- Company will give a boost to the struggling HTC firm
- HTC manufactured the Google Pixel smartphone
- Google also acquired Motorola Mobility in 2012 and sold it later
According to a report from a Taiwanese news outlet, Google is in its last stages to acquire the smartphone manufacturer HTC. Before this, a news had also surfaced that Taiwan-based HTC is willing for some kind of sale if not all. With this, Google clarifies that they want to challenge Apple’s dominance in the mobile industry.
Google’s first official phone, the Pixel got positive feedback but it was not able to reach iPhone’s benchmark. HTC had manufactured Google’s first Pixel and Google plans to do the same for the Pixel 2. Acquiring a smartphone manufacturing firm will bring Google in the experimental stage. The search giant only produces software and this acquisition will prove fruitful to the company as it will now manufacture hardware and software both, provide good quality smartphones accordingly.
If we turn back the pages to 2012, Google acquired Motorola Mobility for $12.5 billion. In the vision of giving tough competition to Samsung, LG and HTC at that time, but Google wasn’t able to do so except making hardcore fans of Nexus.
According to current reports, predictions say that HTC might sell their overall smartphone business or is likely to become a strategic partner. Last year HTC collaborated with Google to manufacture Pixel and Pixel XL and was willing to continue it for the Pixel 2 as well. Reports also say that this deal is going to happen due to HTC’s unstable financial position and Google’s desire to make a perfect smartphone. Will Google will make the strategic investment or will it just buy HTC’s R&D team.
It is also speculated that Google will finally capture the full stake, which includes software, hardware, and manufacturing of HTC. With this, the company will get in a good position to compete against the giant smartphone manufacturers like Apple and Samsung.
Google’s HTC acquisition would be beneficial for both the companies and we can expect magnificent masterpieces sooner or later. But for now, let’s see how Google plays its cards.