September 21, 2017


Google is serious about manufacturing its own hardware...again.

Google has acquired "certain HTC employees" mostly working on the Pixel smartphones and a non-exclusive license to intellectual property in a move that foreshadows that it is serious about integrating software and hardware. HTC gets $1.1 billion and said it will continue to manufacture smartphones under its brand as well as its VIVE virtual reality system.

The purchase of HTC's division isn't likely amount to much--HTC is valued at $1.9 billion--but Google would acquire a supply chain, research and development and skills that would be hard to create in-house. HTC had already halted shares pending an announcement.

Google pays $1.1b for HTC staff and IP | HTC suspends trading, Google acquisition rumors blaze to life

If this HTC deal sounds vaguely familiar that's because it was only a few years ago that Google bought Motorola for $12.5 billion and then offloaded it to Lenovo for $2.91 billion. The Motorola purchase had a lot to do with hardware knowhow, but more to do with defending patent lawsuits.

What's different this time? Beyond a smaller wad of cash and a structure that's more win-win, I'm not so sure. Google probably realizes hardware is a conduit for its artificial intelligence, ads and Android. Cue the Amazon Alexa envy. But that reality doesn't mean Google can integrate HTC well or even keep the talent acquired.

In the HTC statement, it's clear that the Taiwan smartphone maker is optimistic about the financial boost it just received. Cher Wang, CEO of HTC, said:
    This agreement is a brilliant next step in our longstanding partnership, enabling Google to supercharge their hardware business while ensuring continued innovation within our HTC smartphone and VIVE virtual reality businesses.

HTC and Google have been strong partners. HTC is a supplier for Google's Pixel line. What's unclear is whether HTC can continuously offer premium hardware that can serve as a showcase for Google's services. HTC's sales have crumbled since peaking in 2010.


Googles $1.1 billion HTC deal: Can Google learn from its Motorola miscues? - ZDNet



Add it up and Google will face its challenges with HTC. Then again, Google is throwing a financial lifeline to one of its key hardware partners.

Here's how the ledger looks:
Why buy HTC
  • HTC provides a supply chain and manufacturing expertise. HTC, which has roots as a third party contract manufacturer, would know how to ramp up other product lines such as Google Home and may even play a role for Nest down the line.
  • Google gets intellectual property, HTC employees and new skills, but keeps a partner available.
  • The price isn't that bad. You could argue that Google would have had to spend what HTC was worth anyway just to come close to being a hardware player.
  • Google can have a tighter hold on Android. Sure, Lenovo, Nokia and HTC promise that they will keep up with Android and refrain from customizing the mobile OS too much. But the biggest player--Samsung--won't play that game.

Why HTC is a dumb purchase
  • HTC isn't selling out to Google from a position of strength. HTC's wearable strategy hasn't panned out. HTC Vive is promising on the virtual reality front, but is massive. And HTC hasn't been a smartphone leader of late.
  • Google salvages what matters most to it in the HTC deal, but still could lose a partner over time.
  • Google likely hasn't learned from its Motorola experience. To make HTC truly work, Google will have to bridge cultural divides. Google couldn't make Motorola work so it's unclear whether it'll have any more luck with HTC.
  • It's unclear how much innovation HTC will really bring to Google, which counts ads, artificial intelligence and computing scale as its core competencies. Google may be limiting its Pixel designs by limiting its partner choices to HTC's acquired assets.
Latest News
Top news around the world
Academy Awards

‘Oppenheimer’ Reigns at Oscars With Seven Wins, Including Best Picture and Director

Get the latest news about the 2024 Oscars, including nominations, winners, predictions and red carpet fashion at 96th Academy Awards

Around the World

Celebrity News

> Latest News in Media

Watch It
Olivia Munn Reveals Breast Cancer Diagnosis and Double Mastectomy Procedure | E! News
March 13, 2024
kUaEV1Kd3S0
Travis Kelce Shares Details From His Trip to Singapore With Taylor Swift | E! News
March 13, 2024
3YXi-Dgf4eg
Kate Middleton VIRAL Photo: Agency Addresses Photoshop Claims | E! News
March 13, 2024
S4VkO0TpkCY
Da'Vine Joy Randolph Plays 'Smash or Pass' With Iconic Moments From Her Career
March 13, 2024
vkPdJEF2BX4
Jean Smart Wears a Hotel Bathrobe to Present an Award to Hannah Einbinder l Power of Comedy SxSW
March 12, 2024
Bw7uVEYQev4
Lenny Kravitz Walk of Fame Ceremony
March 12, 2024
MlWq8BcnwhE
Dak Prescott Extortion Plot & Steph Curry for President? | TMZ Sports Full Ep - 3/12/24
March 13, 2024
jHFsrjs7OFY
A Japanese space rocket blew up after takeoff Tuesday, turning the sky into a fireball of smoke.
March 13, 2024
YkfJ3Qg8B7c
#KimKardashian and #BiancaCensori hung out at #KanyeWest's listening party Tuesday night!
March 13, 2024
EfwLLq6bx9k
‘Pioneer Woman’ Ree Drummond denies using Ozempic to lose 60 pounds
March 13, 2024
Omfjk1AlZ3A
Chrissy Teigen reveals her ‘boob lift scars’ in daring dress at Jay-Z & Beyoncé’s Oscars 2024 party
March 13, 2024
VxZ2qXAlpmU
Zoë Kravitz pokes fun at dad Lenny Kravitz's style during Hollywood Walk of Fame speech
March 13, 2024
j3-lcFu_1sQ
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
17
Mar
SPAIN: La Liga
Atletico Madrid - Barcelona
17
Mar
ENGLAND: FA Cup
Manchester United - Liverpool
17
Mar
ITALY: Serie A
Inter Milan - Napoli
17
Mar
GERMANY: Bundesliga
Borussia Dortmund - Eintracht Frankfurt
17
Mar
ENGLAND: FA Cup
Chelsea - Leicester City
17
Mar
ITALY: Serie A
Roma - Sassuolo
17
Mar
ITALY: Serie A
Verona - AC Milan
17
Mar
ITALY: Serie A
Juventus - Genoa
17
Mar
GERMANY: Bundesliga
SC Freiburg - Bayer Leverkusen
17
Mar
USA: Major League Soccer
Atlanta United - Orlando City
17
Mar
ENGLAND: Premier League
West Ham United - Aston Villa
17
Mar
SPAIN: La Liga
Rayo Vallecano - Real Betis
17
Mar
ENGLAND: Championship
Leeds - Millwall
17
Mar
SPAIN: La Liga
Las Palmas - Almeria
17
Mar
SPAIN: La Liga
Villarreal - Valencia
17
Mar
SPAIN: La Liga
Sevilla - Celta Vigo
16
Mar
GERMANY: Bundesliga
Darmstadt - Bayern Munich
16
Mar
ENGLAND: FA Cup
Manchester City - Newcastle United
16
Mar
ENGLAND: Premier League
Fulham - Tottenham Hotspur
16
Mar
SPAIN: La Liga
Osasuna - Real Madrid
13
Mar
CHAMPIONS LEAGUE: 1/8 Final
Atletico Madrid - Inter Milan
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Barcelona - Napoli
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Arsenal - Porto
11
Mar
ENGLAND: Premier League
Chelsea - Newcastle United
10
Mar
ENGLAND: Premier League
Liverpool - Manchester City
10
Mar
SPAIN: La Liga
Real Madrid - Celta Vigo
10
Mar
ENGLAND: Premier League
Aston Villa - Tottenham Hotspur
10
Mar
ITALY: Serie A
Juventus - Atalanta
10
Mar
ITALY: Serie A
Fiorentina - Roma
10
Mar
ITALY: Serie A
AC Milan - Empoli
09
Mar
GERMANY: Bundesliga
Werder Bremen - Borussia Dortmund
09
Mar
ENGLAND: Premier League
Arsenal - Brentford
09
Mar
ITALY: Serie A
Bologna - Inter Milan
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.