Google’s announcement that it would acquire the bulk of HTC’s smartphone research and design division came as a surprise, but it wasn’t entirely unexpected.
Sanchit Vir Gogia of Greyhound is certain that with this acquisition, Google is directly targeting Apple. He adds that the move is a wake-up call to Apple, more so because the iPhone maker has “taken a backseat” in areas like home and Wi-Fi. He adds that Apple’s AI is also not best in class and that Apple’s investments in that field are comparatively limited.
“The relationship isn’t new”, says Gogia. HTC also partnered with Google for the first Nexus device, the Nexus One, and the first Pixel as well.
HTC intends to continue building smartphones, but it is unlikely that the company will get back into the premium segment any time soon. Gogia says, “HTC will continue in a different segment.”
Motorola vs HTC
Gogia points out that the Google-Motorola acquisition was a patent licensing deal. “It was a shot in the arm to get IP quickly”, says Gogia.
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.
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