Google Buying HTC smartphone Expertise: For $1.1 billion that is roughly Rs 7,092 crores, Google has to bite off a big piece of device manufacturer HTC to expand its efforts to build phones, speakers and other gadgets equipped with its arsenal of digital services.
Google buying HTC smartphone expertise for $1.1 billion to make smartphones, speakers and other gadgets
On Thursday, to compete with Apple and Amazon in a high-stakes battle, the deal announced underscores how dangerous Google has become about designing its own family of devices to become the technological hub of people lives.
Google has focused on giving away its Android operating system to an array of device makers over the past decade including Taiwan HTC, to ensure people would keep on smartphones and other pieces of hardware using its ubiquitous search engine, email, maps, YouTube video service and other software.
But, last year, that changed when Google stamped its brand on a smartphone and internet-connected speaker. Pixel phones had manufactured by the HTC that Google designed last year, perhaps paving the way for this deal to unfold. Google buying HTC smartphone expertise to build smartphone, speakers.
About four out of five, although Android powers the most smartphones and the other mobile devices in the world, the software can have altered in ways that result in Google services having de-emphasised or left out entirely from the pre-installed set of apps.
To increase the ad sales, that fragmentation threatens to undercut Google ability that brings in most of the revenue to its corporate parent, Alphabet Inc., as people spend more and more time on smartphones and other devices instead of personal computers.
Google paid more than $3 billion for home device maker in 2014:
Among the affluent consumers prized by consumers, Apple iPhone and other hardware products have also particularly popular giving Google another incentive to develop its expensive phone as a mobile platform for its goods and ads.
For home usage, like its voice-controlled speaker that has trying to catch up with Amazon Echo, Google also wants to build more internet-connected devices designed primarily. Google Assistant, a digital concierge the home speaker, includes, that answers questions and helps manage people lives, much like the Alexa in Amazon Echo. For Google and Alphabet, the purchase is a gamble on several fronts.
So far, into hardware, Google previous forays haven’t panned out to have big winners. For smartphone maker, it paid $12.5 billion Motorola Mobility for $ 12.5 billion five years ago only to sell it off to Lenovo Group for less than $3 billion after struggling to make a dent in the market.
Google paid more than $3 billion in 2014 for home device maker Nest Labs, that is still struggling to make money under Alphabet ownership.
Huawei and other equipment producers that Google relies on to give its Android software, expanding into hardware also threatens to alienate Samsung Electronics.