Google Is Buying Part Of HTC’s Smartphone Team For $1.1 Billion To Take On iPhone

Alphabet Inc. subsidiary Google has sets its sights on the Apple’s iPhone with HTC deal now. It has just confirmed that it plans to make a $1.1 billion investment in the smartphone hardware industry.

It’s official, Google buys part of HTC Mobile business for $1.1B to once again take on iPhone market. This means, Google is about to acquire part of Taiwan-based HTC’s mobile operations, with an approximate 2,000 HTC staff making the move across to work directly for Google.

Of the three most influential companies in smartphone design, Nokia fragmented into a million pieces after being acquired by Microsoft, Apple is still going strong, and Google just bought the third with its $1.1 billion deal with HTC. Google already has a working relationship with HTC, which are somewhat closer in developing the Google Pixel smartphone line since last year. But this deal utterly suggesting that everyone involved in Pixel is looking forward to moving forward as a single entry:

These future fellow Googlers are amazing folks we’ve already been working with closely on the Pixel smartphone line, and we’re excited to see what we can do together as one team. The deal also includes a non-exclusive license for HTC intellectual property.

Just ahead of Google’s Pixel 2 and Pixel 2 XL launch on October 4, the company bought HTC team. For that amount, it gets an in-house team with experience of Pixel and the expertise required to continue pushing out innovative and exciting Pixel iterations under the Google brand.

Is today’s HTC deal is nothing like Google’s takeover of Motorola years ago

HTC, on the other hand, will for sure continue to operate in the same space that it’s currently involved in with the search giant’s Chief Financial Officer, Peter Shen, confirming that the company will hold onto approximately 2,000 researchers and design staff. And that $1.1 billion deal means HTC can ensure “continued innovation within our HTC smartphone and Vive virtual reality business.”

Google’s $12.5 billion takeover of Motorola in 2012 is a commonly cited reference point for today’s HTC news. Later the Google Motorola deal passing the company on to Lenovo just three years later in 2014 for mere $2.91 billion. One company “HTC” is getting serious about services and the other (Google) is getting serious about hardware.

At Google I/O this summer. Google proudly boasted it has more than a billion users of Google Maps, YouTube, Chrome, Gmail, Search, and Google Play. Over two billion active Android devices as well. When compared, Google doesn’t quite have the quality of third-party apps that Apple has, which is more logical and obvious progression we see for Google than we do for Apple.

Finally, it will be extremely interesting to see what Google introduces next? A premium-tier device can go right up against the iPhone? The HTC deal today makes sure of that? Stay tuned for more!