Rumours have circled that Google Inc. is in the process of buying smartphone maker HTC. The reports have been derived from Taiwanese news outlet Commercial Times, and the deal is reportedly in the “final stages.”
HTC was once of the most prolific smartphone makers in the United States but has recently fallen off after consecutive unsuccessful attempts at smartphone launches. It is a little puzzling as to why Google would be interested in the company, but these are reports that have surfaced only from a distant source. However, there are a couple of reasons why they would be interested in HTC.
The Taiwan-based company currently builds the Google Pixel, which has shown successful numbers in past quarters. There is a misconception that Google was responsible for creating the smartphone, but it is actually the doing of HTC. It is obvious Google is attempting to compete with rival Apple, and this acquisition would put the company in the right direction. It’s no surprise that the Google Pixel isn’t putting up the same numbers as the Apple iPhone, but in Google’s perspective this acquisition will give the company the ability to “experiment with hardware and essentially control the entire experience of using one of its branded phones.”
This would not be the first time that Google has decided to buy a phone company. In 2012 Google purchased Motorola Mobility for around $12.5 billion and saw it as an opportunity to expand upon its business at the time. Google’s reasoning behind the acquisition was that the company thought it could expand upon the Nexus device, which was quite popular at the time.
The device was especially popular among loyal Android fans, but the deal went sour pretty quickly. Google never merged the Android and Motorola teams, “which largely operated in two different states across the U.S. Motorola continued making Android phones, such as the Moto X Pure, but there was never anything special to set its phones apart from other rivals like Samsung, LG, and HTC.”
Although its past history of acquiring phone companies haven’t been quite ideal, Google may find itself in another grand opportunity to better compete with Apple.