Google signs agreement with HTC and it’s a whopping $1.1 billion deal

Well, Google has been in the news for quite some time now. And everyone is eagerly waiting for the launch of its Pixel 2 smartphone. Google has successfully managed to expand its capabilities from being a search engine giant to a reputed software as well as hardware making company with the launch of a wide range of services and devices. And to add to this, Google has recently made a big deal with smartphone maker HTC.

Why the $1.1 billion deal

Through this $1.1 billion deal, Google has managed to acquire a team of around 2,000 smartphone engineers from HTC. And this deal indicates that Google is seriously focusing on its hardware capabilities and wants to become a major hardware company in coming days. In 2016, Google created a new hardware division and re-hired Motorola chief Rick Osterloh to run and maintain that group.

And now with the hiring of the phone designing and engineering of HTC which had already created the Pixel phone, Google has sent a clear message to its closest competitor, which is Apple. As you know, Apple is constantly trying to make itself more independent from Google by creating its own set of services. So, Google is also trying to get rid of the services that it provides to the iPhones, by focusing more on its Pixel smartphone. Hence it has bought the HTC team to iterate the Pixel designs much faster with the help of an in-house crew and also to enhance and innovate itself in the field of hardware and software. So Google decided to completely acquire an expert phone designing and engineering team of HTC rather than relying on a contract basis. Rich Osterloh said that their team’s goal is to provide the best Google experience to the people around the world both in terms of hardware and software and also the services they offer.

The competitors of Google

Alex Kipman, Microsoft’s resident augmented-reality genius said that Google is an expert in the field of artificial intelligence and cloud computing And it has some experience in developing hardware through building the Chromecast and other devices. But it lacks the deeper knowledge and experience in the hardware business that its rivals possess. For example, Google is very new to the Augmented Reality and Face detection ID technology. Microsoft – as well as Apple and other companies – has been selling more complex devices to much more people for far longer as compared to Google. So this Google-HTC deal is very important for the company.

Best deal of Google so far

After the complex Motorola deal in 2012, Google has now played a better game by acquiring some important set of assets to strengthen its hardware. With the new highly experienced set of HTC engineers, Google has suddenly gained some strength and confidence which can transform itself from being a new hardware vendor into a leading hardware company. Now with a group of in-house hardware experts, Google can compete with its competitors in a better way.


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