It s a well-known fact that HTC has been struggling with its smartphone business for quite a long time and despite numerous attempts to turn things around, the situation has only worsened. Some recent reports suggested that HTC was actually looking for a potential deal of either getting an investment or selling its smartphones business and now, there is a new report claiming that it is Google which is actually interested in the proposal.
The reporting is coming from Commercial Times (a Chinese language publication) claiming that Google and HTC are in “final stages” of negotiation regarding a potential deal of former acquiring the latter’s smartphone business. It specifically mentions that the search giant does not have any interest in spending any money on HTC’s virtual reality business which means the Vive division is not a part of the discussions.
If we talk about HTC, it was once a prominent player in the Android smartphone market but since past few years, things have changed completely for the Taiwanese OEM. Its smartphones have failed to attract consumers time and again. Even the latest HTC U11 flagship resulted in a disappointment for the company which was betting heavily on the phone to revive itself. As per a recent Digitimes report, HTC recorded its lowest revenue for the August month which was just shy of $100 million. It was a 51.5% decline from last month and 54.4% from last year. These figures are surely alarming for HTC’s smartphone division.
As for Google, it will not be the first time it will own a failed smartphone business as it acquired Motorola in 2012 but sold it to Lenovo in 2014 but the deal proved to beneficial for Moto. The move to buy HTC seems to be similar but makes more sense now as Google now has its own brand of smartphones named Pixel. We also know that HTC manufactured the Pixel last year and is also rumored to be working on one of the Pixel 2 smartphones for the year.
The search giant is appearing to be interested in getting a better control over the hardware aspect of its Pixel lineup with the HTC acquisition. But it is hard to tell whether such a deal would actually prove to be fruitful for Google. It is also worth mentioning that all these possibilities are based on speculations and there is no official confirmation about Google’s plan to buy HTC. We will keep you updated as more information will appear.