Google Closes HTC Deal, Welcomes Smartphone Innovators

Everyone expected HTC's mobile business to fold. Everyone expected Google to buy up HTC. Neither and both happened. September last year, Google and HTC announced a $1.1 billion deal that, among other things, would see a large chunk of the Taiwanese smartphone maker's mobile team transfer to the mothership. Google has now announced that deal has finally completed and it is welcoming the people who helped HTC rise to fame. Hopefully, they aren't the same people responsible for its fall from grace.

Google lists HTC's firsts in the industry, the first to make a 3G phone, the first with a touch screen phone, the first with an all-metal unibody phone, and probably others it didn't mention. Market observers, not to mention old-time fans, will definitely recall HTC's early phones with fondness.

Sadly, that's a matter of history now. Year after year, HTC fails to make a profit out of its smartphones despite putting out commendable devices. It would have probably been only a matter of time if Google hadn't come swooping in to save it. Somewhat.

Google didn't buy the entire company. It didn't even buy HTC's mobile business entirely. It only entered into a deal that included the transfer of human resources, among other things. Analysts suspect this is a strategy by both companies to avoid the costly and time-consuming process of acquiring a company, not to mention the scrutiny Google would face.

The question now is "what's next" for Google. It is entering into its third year in making its own smartphones and the pressure is only going to get stronger. Especially after the questionable performance of the Pixel 2 XL, which, coincidentally, wasn't done by HTC. Now that Google has its own dedicated team of phone makers and designers, the expectations for the Pixel 3 will probably rise even higher.

SOURCE: Google