Google to buy part of smartphone maker HTC for $1.1 billion

Google to buy part of smartphone maker HTC for $1.1 billion

And numerous HTC employees joining Google under the new deal are already working on Pixel phones. In addition, Google will receive a non-exclusive license for HTCs intellectual property. It has purchased HTC's smartphone operations only, but is still giving the Taiwanese company some wiggle room for its own smartphones.

HTC, based in Taiwan, suspended trading of its shares Wednesday pending an announcement. Google had sold off other parts of Motorola Mobility for more cash within months after it acquired the company in early 2012. Instead only the team behind the Pixel smartphone will be making the move to Google. To recall, last year's Google Pixel phones - Pixel and Pixel XL was manufacturers by HTC - and there's no doubt that the phones were ideal from nearly all aspects, especially in the imaging department. HTC has led many innovations in the smartphone market, including popularizing smartphones with large displays and putting an emphasis on audio quality. It isn't clear if any Google acquisition would include Vive. Two years later, it offloaded the company to Lenovo.

What do you think are the reasons for Google's decision to acquire part of HTC's smartphone business?

When the first batch of made-by-Google devices was unveiled, Osterloh said that hardware was an important component of the tech titan's business, and that they would be in it "for the long run." HTC built some of Google's Nexus tablets, and Google worked closely with HTC on the manufacturing and assembly of its first-ever end-to-end phone design, the Pixel. AAPL, -1.68%, Samsung Electronics Co. "We're excited about the 2017 lineup, but even more inspired by what's in store over the next five, 10, even 20 years".

The tie-up will give Google a greater ability to integrate smartphone hardware and its Android operating software in the same manner as Apple, a feature that is seen as helping the iPhone.

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HTC has been in the mobile phone business for more than a decade and enjoyed a cult following like Nokia and Motorola did once.

HTC, once a star of the intensely competitive smartphone sector, has been struggling in the face of stiff competition from Apple and Samsung as well as strong Chinese brands like Huawei. "HTC does not comment on market rumor or speculation", the note continued. Its Evo 4G was the initial device to support Sprint's now-defunct WiMax standard.

For fans of HTC's beautifully crafted (although often ignored) products, including the HTC One series, the Google deal is lifeline. For one thing, Google has a weak track record when it comes to selling smartphones-and hardware in general.

The company said it's already working on its next flagship phone, the successor to the HTC U11 launched earlier this year.