Google completes acquisition of HTC's smartphone division

Google shares ended the US Monday trading session lower, ahead of an announcement earlier Tuesday the tech giant has finalised its deal with HTC.

Compared to competitors in the smartphone sphere (as in hardware, and not software, like it's proprietary Android operating system), Google is for the most part just starting to create a name for itself. Google worked with a subset of its new HTC hires on a contract basis for the Pixel and Pixel 2, according to a source familiar with the development, and now the company will have a larger R&D team in-house. "You have to be vertical in some cases to really push the envelope for consumers", he added. "Our intention is to invest in this for the long term". Not that we see HTC abandoning smartphones, but given the success of the Vive and the recent introduction of the Vive Focus, HTC is clearly interested in making a splash in VR. The deal brings over 2000 smartphone experts in the search giant's kitty, of which some may help in developing custom processors.

Also included in the deal is a non-exclusive license of HTC intellectual property, meaning HTC can continue to make products, including phones, under its company brand. The company thinks the deal with Google marks the beginning of a new era for innovation when it comes to the virtual reality and smartphone businesses.

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Still, by designing more silicon itself, Google could cut business for other suppliers. That's what Apple has been doing with the iPhone since its first model.

HTC set the standard in mobile for many years and with the HTC U11 everything I've wanted in an HTC phone is provided. Dialog Semiconductor slumped last month after telling investors that Apple, its biggest customer, could design its own power-management chips.

Essentially, Google has paid $1.1 billion for the team that developed and built its Pixel phone (the Pixel 2). However, it is likely that many of these devices were already in the pipeline.

  • Toni Ryan