Google signs a deal worth $1.1 billion with HTC

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Internet search giant, Google is set to acquire a part of HTC for $1.1 Billion. After Motorola, this is the next big acquisition for Google in smartphones hardware space. This is not the first time when Google has shown interest in buying a hardware company. In 2011, Google had bought Motorola for a whopping $12.5 billion, but that deal did not bear any fruit and Google had to resell it to Lenovo in just $2.91 billion within 3 years of its acquisition.

This time around, although the deal is not anywhere close to that of Motorola but this deal will certainly help Google’s hardware division to improve their productivity. In this deal, Google is not completely buying Taiwan’s HTC, but a part of its hardware unit. Google will gain manpower and some intellectual rights from HTC hardware unit. This move will help Google to improve its efficiency in smartphones hardware technology. Google will get some 2000 talented hardware engineers from HTC, who had earlier worked with Google for their “Pixel” project. But now they will work as Google employees instead of HTC.

Google’s Android is the most popular mobile operating system in the entire world. Android is used by almost two-third of smartphone users worldwide. But Apple iPhones are considered better in terms of end-user experiences and thus makes Apple, the global leader in smartphone business segment. Google wants to challenge that dominance and this deal is an important step in that direction.

HTC has many path-breaking technologies in their smartphone business like metal body design with M7, which Apple has followed in iPhone6.  HTCs “Boomsound” technology is still considered best for smartphone audio. Their “Ultrapixel” camera, U11 is considered as one of the best in business. AI(Artificial Intelligence) and software-hardware integration are very important for a better end user experience.

“Creating beautiful products that people rely on every single day is a journey, and we are investing for the long run,” said Osterloh, Chief, Google Hardware division. He has previously worked with Motorola in their hardware division.

This acquisition will boost Google’s hardware technology and make Google’s smartphones much better in terms of end user-experience.