Earlier this month, we have reported that the giant Google is planning to buy smartphone segment of HTC to manufacture Google’s new and second generation of Pixel smartphones, Google Pixel 2 and Pixel 2 XL. Well, it is official now, Google has finally signed agreement with HTC for the production of the new Pixel smartphones. Google to pay over $1.1B USD in cash from Google for the same.
Google’s new generation Pixel smartphones, Google Pixel 2 and Google Pixel 2 XL are going to be unveiled in the market on October 4th. As per this agreement, Google will also hire all the employees of HTC in order to manufacture this new Pixel devices. HTC has also spoken that a number of HTC employees were working with Google for the same which will now be officially Google’s employees.
Since we know that, HTC has been working with Google for a long time to produce a number of its devices in the past. It is best for the giant to acquire the entire sector of this production from HTC and it did the same thing. HTC had produce a number of hardware for other devices as well so Google’s new smartphones are a part of HTC itself.
For the same, Google has released a statement on this agreement. Rick Osterloh, Senior Vice President of Hardware at Google has siad that, “HTC has been a longtime partner of Google and has created some of the most beautiful, premium devices on the market.We’re excited and can’t wait to welcome members of the HTC team who will be joining Google to fuel further innovation and future product development in consumer hardware.”
HTC is a leader in consumer electronics which are not doing well in the market for quite some time. So this new agreement will be beneficial for both, Google as well as HTC. HTC will help Google to offer more powerful hardware to for the future smartphones in the coming days.
Apart from the smartphones sector, the giant will keep manufacturing its other devices such as its VR headsets and other devices. So, you will not be able to cut off entirely from HTC giant.
On this official agreement, Google will separately also receive a non-exclusive license for HTC intellectual property as well as the employees of HTC, many of whom have worked on its Pixel smartphone.
If we talk about the past, Taiwanese smartphone giant, HTC had total 10% of smartphones market share in the industry which is falling down continuously since there are many competitive giants came up with their innovative smartphones in the market. Google took the opportunity and they have finally agreed with the deal. So, the new Pixel smartphones will be officially developed by Google and the future smartphones from the Google will also be manufactured by Google as Google has acquired the entire smartphones segment from HTC.
Well, the original transaction is still waiting to be approved by regulatory officials as it takes some time to complete all the documents. It is expected to complete in early 2018.