Google closes HTC deal worth $1.1 billion

Steve Phelps
February 1, 2018

Google's Pixel devices apparently won't come with an cheap price tag, unlike what we have seen with the Nexus series of smartphones. Keep in mind, though, that Google didn't acquire HTC's entire smartphone business here.

HTC said in a separate statement that it plans to proceed with its next flagship smartphone and will focus its efforts in the segment. Whether or not, it would lead to Pixel phones being an HTC-exclusive is yet to be seen though. Though we reported yesterday that making your own custom hardware requires a ton of cash even though it saves a bit on component costs, Google has a lot of liquid cash that it can use for this very objective.

Google may also be considering building its own hardware for virtual/augmented reality headsets and artificial intelligence-based systems, although HTC enjoys its own market lead in the VR headset market.

It's an obvious next move for Google, it's just unfortunate that they have made a decision to compete in the high-end arena and completely ditch the ultra-affordable Nexus line of phones.

What does this mean for suppliers like Qualcomm? Other Android manufacturers "know why we're doing this", Osterloh tells Bloomberg in an interview. The Pixels won't be affordable phones like the Nexus models that preceded them, as Google seems committed to manufacturing only high-end devices.

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Google is making a billion dollar bet on its ability to beat Apple at the very top end of the highly competitive smartphone market. Sales remain limited to nine countries, including the US, Germany, and Singapore.

For now, the obvious application for the influx of talent into Google would be on its Pixel smartphones, especially since the new Googlers are familiar with the devices.

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Osterloh knows the history well.

So what makes things different this time around?

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