Google has just ushered in a new strategic move into the smartphone hardware business by announcing $1.1 billion acquisition deal with HTC. Driven by its passion of creating more innovative products in the next couple of decades, Google has roped in HTC's smartphone design and engineering team to build something along the lines of HTC Dream, the first ever Android smartphone built together by Google and HTC.
Meanwhile, HTC has made its intentions clear by announcing its preemptive decision to create one more flagship phone under HTC moniker, before Google takes over the hardware business completely.
HTC is likely to cut down on its production investments in the coming months as it will be focusing on a streamlined product portfolio involving most profitable and successful models in the premier segment such as the HTC U11.
Google is expected to bring the much needed financial flexibility and stability to HTC's operating costs while also minimizing losses in the long run. The latter had been going through considerable loss for several months now, which resulted in massive pay cuts across the staff members who will soon be hired by Google.
HTC is reportedly playing it safe by refusing to shutdown smartphone business operations as it could land a devastating blow to its existing inventory with carriers and retail stores across the world.
As The Verge reports, a defunct company will struggle to attract buyers in the wake of a failing smartphone business that demands quick revival to turn around HTC's dwindling fortunes.
It seems like HTC wants to give it one final push to emerge as a strong contender and avoid further loss in the flagship smartphone market, before the Google agreement kicks into action sometime early next year.
Consequently, a HTC branded 2018 flagship phone is definitely on the cards as the company intends not to give up amidst intense competition from the likes of Samsung, LG and the fast-evolving Google in the Android market.
Nevertheless, HTC still has a new silver-lining in its promising Vive VR platform and henceforth it could be a wise move to shift all its focus there and make it a global success. At the moment, HTC's revival chances with its sinking smartphone business look bleak and uncertain.
