Google Is On the Verge Of Taking Over HTC’s Mobile Division
HTC has reported a consolidated revenue of USD 99.69 million for the month of August, the Taiwanese giants’ lowest monthly figures in 13 years. The revenue for the month of August represents a 51.5% decline from the previous month and 54.4% from a year earlier. Also, HTC’s total sales in the first 8 months of 2017 were NT$39.86 billion, representing a 14.4% decline from last year. According to latest reports by The Commercial Times, Google is in the final stages of taking over HTC’s mobile division. This would either result in a complete takeover for HTC’s Mobile division or a partial investment from Google into HTC’s dimming business. According to the report, the deal could be announced by the end of the year.
The fact that HTC is producing the Pixel 2, launching this year on October 5 has further fueled these rumours that Google will outright buy the mobile division of HTC. The Pixel XL 2 is being made by LG this year, unlike last year when HTC made both the Pixel and Pixel XL.
This acquisition will help Google compete with the likes of Samsung and Apple in the smartphone market. The last year’s Pixel devices were well received but never challenged the dominance of the iPhone or Samsung’s flagship S series phones. Acquiring a smartphone company would make it possible for Google to invest in hardware research and come up with competitive smartphones at a consistent rate.
This is not the first time that Google will be acquiring a smartphone company. In 2012, it took over Motorola Mobility for USD 12.5 billion, only to sell it to Lenovo for USD 2.9 billion a couple of years later. Google then retained all the patents owned bay Motorola, to help defend the company from potential patent disputes from the likes of Apple and Samsung. HTC has a vast library of patents, if Google acquires HTC’s Mobility division, the company will own a large chunk of modern smartphone patents which can then help it design and sell technologies in the future. Google may also end up reselling HTC to a different buyer, like last time, however, the company seems keen on retaining a mobility division. Expertise from HTC will help Google in growing its own Pixel brand.
There were reports in late August that HTC was holding talks with companies like Google to potentially buy its virtual reality division or even the entire company. With the latest revenue reports representing plummeting sales of its devices, the deal looks more than certain to go through.
