Google Acquires HTC Talent To Bolster Devices Sale

by CXOtoday News Desk    Sep 21, 2017

Google

Google will buy a section of HTC Corp’s engineering and design teams for $1.1 billion to boost the search giant’s relatively new hardware business, as per a report on ET.

Google is roping in HTC’s employees including teams that have worked on the Pixel smartphones. The agreement paves for a non-licencing agreement for HTC intellectual property, the companies said in a statement.

With this, Google gain firmer grounds over the production of its Pixel smartphones and other devices, which will help bolster sales. The gadgets are becoming instrumental for Google’s to alley critical software products like its voice-enabled assistant and compete well with Apple Inc. The US internet major is preparing to launch a second generation of devices in October, building a portfolio that runs the range from Google Home speakers to Daydream.  “It’s still early days for Google’s hardware business. We’re focused on building our core capabilities,” Rick Osterloh, senior vice president of hardware, said in a blog post. “

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.” 

Google already has launched its own phones, this makes Android phone makers used to their partner being a rival. The production resources of HTC, which assembled the first Pixel device and was key to the Nexus line, may support this existing phone operation. More control of hardware production would also give google more control over the distribution of new services.

As far as smartphones are concerned, Google’s pixel’s is not among the top notch. Estimates pegged sales at 552,000 units during its first quarter. However, selling Pixels has supplementary benefits for the company major one being to boost its primary sales. With each Pixel phone it sells, Google doles out less in traffic acquisition costs: it pays money to partners like Apple and helps to install Google’s search service. 

The cost has escalated steadily, bringing down its sales totals last quarter in particular. A larger hardware unit would balance such expenditures, although it may incur more expenses in terms of maintenance and marketing.