Taiwanese news site commercial times has reported that Google is about to buy HTC’s Mobile Business and the deal is said to be in final stages of negotiations. Because of depressing financial results in the past few years, HTC has decided to sell off its entire Mobile Business to Google the report says.
HTC had a very strong foothold in the mobile business and market a few years back, six years ago in 2010-11 HTC was ranked as the fourth best-selling smartphone OEM globally, HTC also enjoyed 9 percent market share in smartphones category during that time.
But unfortunately, the company couldn’t maintain its high altitude, the company is facing internal financial issues in the recent times, the overall revenues are decreased 51.5 percent from the previous month and 54.4 percent year over year basis.
However, HTC has launched quite a few remarkable smartphones in the market lately, the HTC U11, and HTC U Ultra, couldn’t even turn the company’s fortune around. HTC has been turning lot of stones around to get it back to the position it lost but it seems all in vain.
Google Will Either Buy or Partner With HTC
According to the report, Google is currently considering two strategic options, Google either buys the entire business of HTC or Google make a strategic partnership with HTC. We have a history of HTC and Google partnering at some occasions puts Google in a situation where it is likely to choose the latter option.
It’s worth mentioning, after the Pixel and Pixel XL, HTC is reportedly behind the upcoming Google Pixel 2, LG is also reported to give Google a hand in producing Pixel XL2.
However, Google’s efforts to lead the smartphones market is still shady, Google has not been quite successful with the previous smartphone releases which create more risk in building own hardware rather than asking other companies to do it, which provides cost reduction and more control over.
HTC Vive business, on the other hand, is not the part of Google deal, however, News from the last month indicated that the company is seeking an opportunity to sell its VR subsidiary. The commercial Times haven’t cited any sources in this report, therefore; it could be News with less authenticity. But HTC has seen a drop in shares by 8 percent already due to this.
Manager at Research Snipers, RS-NEWS, Digital marketing enthusiast and industry professional in Digital Marketing, Social Media, Business News, and Technology News, with vast experience in the media industry, I have a keen interest in business technology, News breaking.