HTC hasn’t been doing very well in the past few years, in fact it’s been doing worse than ever. According to a new report, Google is in talks with HTC to buy their smartphone business.
HTC has been in trouble for years, but according to the latest financial report from the company – they have suffered the worst decline YoY in revenue ever with 54% while the previous month was 51%.
This is certainly bad news for HTC, who is now considering on selling its smartphone business altogether. Obviously HTC would sell it’s business to the highest bidder and perhaps someone who could revamp the company’s smartphone sector by a lot in the next few years and make it profitable once again.
If HTC would sell its smartphone sector, they would certainly keep their VR (Vive) business going as the sector is steadily and successfully growing for the company.
But this brings back memories when Google decided to purchase Motorola for a massive amount (for $12.5 billion) . Google managed to run the Motorola business well and get it back on its own feet by selling it to Lenovo (for $3 billion – 2 years later), hell Google even managed to release a few successful devices that helped the company make profits and great low, mid and even high-end devices. It’s a different story how well Motorola is doing under the shoulders of Lenovo.
As we later found out, Google mostly only bought Motorola at the time for its massive patent lists – and that’s why it probably paid such a high price, and that’s why it only sold it for a significantly lower price. Google certainly didn’t want all of Motorola’s patents to get in the hands of Apple, Microsoft or even other Android manufacturers’ hands.
So why would Google consider such a move again? Well, it’s likely because of its Pixel devices. Google has joined in the high-end smartphone business by releasing their own non-Nexus devices. They have all of the software they need (since they own the Android OS), but they do not have the manufacturing process to make their own hardware. In a race where Apple controls both the software and hardware, Google really cannot be missing out on not controlling its own hardware components – and that’s why Google may be considering on buying HTC’s smartphone business, perhaps for even a low price (compared to what HTC was worth a few years back).
As we have seen in the past, Sony has managed to make itself profitable once again, even if they do not dominate any markets, they have successfully started to grow recently by selling less, but highly priced handsets and by improving their software support for the Xperia X lineups. (Long live the last Z5 series lineup – though definitely not from Sony’s perspective)
Keep in mind that LG is said to be one of the companies to manufacture this year’s Pixel 2 XL devices while HTC is said to again be making the smaller Pixel 2 devices.
We want to hear your thoughts, do you think Google would benefit from such a purchase? Do you think HTC has no chance on getting back into the smartphone industry? Let us know in the comments down below!