Few days earlier, reports emerged that Google was planning on buying HTCs smartphone business as the company is looking to manufacture its smartphones. At the time, it was noted that both companies were close to reach an agreement and earlier today, reports emerged that the search engine giant is one the way to acquire part of HTC’s smartphone business thanks to a deal worth about $1 billion.
While Google has acquired part of the company, it won’t have a direct involvement in the company’s smartphones related business. Thanks to the latest deal, HTC will continue to run its smartphone business while Google will provide its hardware capability to produce its own smartphones along with other devices.
This latest deal however, is far from surprising. Thanks to Google’s strategy of offering licenses for free, Android has become dominant mobile operating system. However, this strategy has contributed to bigger problems as more variations of devices have emerged in the process which offer different user experiences. As a result, Google is actively trying to provide solid Android experience as it started to offer different devices.
On the other hand, HTC has been struggling to keep up with the competition it the smartphone market as the company’s sales figures dropped in the last several months. As a result, HTC might benefit with the latest deal in the long run. Rick Osterloh, Google’s head of hardware division commented on the latest deal, “We’re focused on building our core capabilities, while creating a portfolio of products that offers people a unique yet delightful experience only made possible by bringing together the best of Google software—like the Google Assistant—with thoughtfully designed hardware. HTC has been a longtime partner and has created some of the most beautiful, high-end devices on the market.”
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