Google is again making a big purchase of the reputed smartphone manufacturer HTC after Motorola. Motorola was acquired by the same company almost six years back. Both the companies HTC and Google have already made their deal official where Google is buying a part of the Smartphone division of HTC for $1.1 billion. However, the interesting news is HTC will still persist as a Smartphone manufacturer for one more flagship that is set to release by the early next year.
As of now, HTC employs around 4000 design and research staffs while half of them will move to Google after the deal is done.
So, even though a great part of the talent is all set to send to Google, but it will not hamper the Smartphone manufacturing division of HTC anyways. And as per the statement of HTC CEO Cher Wang, they will continue innovation within their Smartphone and the Vive virtual reality business. So, HTC fan gets ready to get the next flagship from them by the next year.
As per the report, HTC was going through huge loss for several months and this has made them opt for such decision. The salaries of many staff were also pending for quite long time. So, this acquisition of HTC by Google is definitely a good step that will help them greatly.
Also, there are various reasons why HTC did not prefer to shut down their Smartphone division completely. The primary reason is the inventory. In case they completely shut down the Smartphone division right now, the inventory will be catastrophic as this is quite obvious that no one will prefer to buy the phone from an obsolete company.
Anyways, it is expected that in the future HTC will completely shut down the Smartphone division and will highlight their focus entirely on the VR devices.