Google to hire HTC's best smartphone talent

[Nowak]

Sauce: https://www.androidcentral.com/google-htc-deal

 

Previously, it was rumored that Google might either enter a strategic partnership with HTC or outright by HTC's phone business, due to Google's close relationship with the company. I broke this news on here a couple weeks ago. Today, that's official... sort of.

 

Quote

After intense speculation and lots of pontificating by tech pundits, Google has made it official: it's going into business with HTC.

But instead of buying HTC's phone business outright, Google has "signed an agreement with HTC, a leader in consumer electronics, [to hire] a team of HTC talent [to] join Google as part of the hardware organization. These future fellow Googlers are amazing folks we've already been working with closely on the Pixel smartphone line, and we're excited to see what we can do together as one team. The deal also includes a non-exclusive license for HTC intellectual property."

Instead of a strategic partnership or buying HTC's smartphone business, Google is hiring some of HTC's smartphone talent for their own smartphone business. In theory, this closer connection to Google should make the Pixel phones better. This deal also includes a non-exclusive license for HTC's intellectual property, allowing it to iterate on HTC's future phones (most likely the Pixel) for years to come.

 

For those of you wondering, HTC will continue to operate as an independent business.

Quote

It appears that HTC will continue to operate as an independent entity, both as a maker of VR hardware under its Vive division, and possibly as a smartphone maker, too, though in what capacity remains to be seen.

 

The announcement was made by Rick Osterloh, the head of Google's hardware division, who had the following to say about the news:

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It's still early days for Google's hardware business. We're focused on building our core capabilities, while creating a portfolio of products that offers people a unique yet delightful experience only made possible by bringing together the best of Google software—like the Google Assistant—with thoughtfully designed hardware. HTC has been a longtime partner and has created some of the most beautiful, high-end devices on the market. We can't wait to welcome members of the HTC team to join us on this journey.

 

HTC and Google have been working together since the very beginnings of Android. Their repertoire includes the first Android phone (T-Mobile G1/HTC Dream), the first Nexus phone (Nexus One), the first mass-market, audio-focused, all-metal phone (HTC One M7) the Nexus 9 tablet and the Pixel/Pixel XL. Google is spending $1.1 billion on the deal, and it is expected to close in 2018. 

 

Thoughts? Concerns? Screams of agony? While I'm glad that this means that the Pixel team (I believe that's who are being transferred to Google) gets to work more closely with Google, this will undoubtedly have an effect on HTC's own phones. This is the same company that brought us the very first consumer Android smartphone 9 years ago, remember. Surely everything will work out fine for both companies in the end, though.

Edited September 21, 2017 by Daring
Updated with new information

[SansVarnic]

Hiring, I thought Google/Alphabet was buying HTC er something like that. I probably misread that somewhere.

[Nowak]

Just now, SansVarnic said:

Hiring, I thought Google/Alphabet was buying HTC er something like that. I probably misread that somewhere.

That was the rumor. Google made the announcement just now. Not quite what the rumor mill said, but it still confirms a close relationship between Google and HTC, that HTC was willing to transfer some of their best smartphone talent to Google specifically.

[handymanshandle]

So brain drain the company and then leave? Or is Google going to inject some money into HTCs smartphone business.

[vanished]

So how do you explain this then?

 

[Skanky Sylveon]

5 minutes ago, wcreek said:

So brain drain the company and then leave? Or is Google going to inject some money into HTCs smartphone business.

It seems brain drain.

 

 

With bendy straws.

[Nowak]

2 minutes ago, Ryan_Vickers said:

So how do you explain this then?

 

Misread the news. Google is not buying HTC itself.

 

A press release from HTC CEO Cher Wang confirms that what Android Central is true: HTC will still be an independent company, and certain employees will be reporting to Google.

[vanished]

2 minutes ago, Daring said:

Misread the news. Google is not buying HTC itself.

 

From HTC CEO Cher Wang: http://www.prnewswire.com/news-releases/google-and-htc-announce-us11-billion-cooperation-agreement-300523328.html

ok... I guess I'll try to reconcile these 

[IgorM]

Maybe it was a better decision than the motorola past deal.

[Master Disaster]

So in the future we might end up with a Google Vive

[porina]

Trying to digest this still... while I understand HTC needs the cash, I'm not sure this relationship feels good for long term. In essence it sounds like HTC licensed their IP and sent some people over to help Google use it, but the loss of people... you have to wonder if that will impact their own phone lines in future, unless there's more of a 2-way share going on than reported. Like maybe they'll get more help on Android.

 

From a user perspective, I hope this will allow Pixel line to grow better, faster. I skipped 1st gen, but I'm likely to bite on the next generation when they're released later this year and retire my 5X. This deal is unlikely to affect that as it will be substantially done already, but the 3rd generation Pixel might be where we see their impact.

[LAwLz]

So basically, Google decided that it was not worth buying HTC because the brand is essentially worthless. So instead they just hire all the talent and gets a licensing deal which means they can use whatever tech from HTC they want.

Sounds like a good deal for Google and a really bad deal for HTC in the long run.

This is basically admitting that HTC is leaving the smartphone space. They can't be expecting to compete with the likes of Apple and Samsung if their smartphone talent is leaving the company.

[captain_to_fire]

6 hours ago, Daring said:

Thoughts? Concerns? Screams of agony?

Will they bring Boom sound stereo speakers to the Pixel line?

[porina]

BBC article (saw on my phone so no link to hand) claims half of HTC's phone people will move to Google, "about 2000". It also suggests they're already involved in Pixel related stuff.

 

I missed a detail earlier, that the deal will close end of next year. Thinking more, if they are people already working on Pixel... will it change much? The tighter integration with Google as opposed to working through HTC could allow efficiency improvement but it might not change things as much as I first through.

 

A gap I find with Google's Pixel strategy is there isn't a medium price offering. As a random thought, could HTC target that space? Don't compete with Google, but complement them. It wont grab the headlines like a flagship would, but a good phone, with good specs, at moderate price could do well in the market. Especially if they keep up to date on cutting edge Android. Because it is HTC doing it, not Google, it wont dilute the Pixel branding either.

[Drak3]

Now Google can squander away the skills and ideas of good engineers by forcing them to ship piss poor product.

Pyo.

[DocSwag]

2 hours ago, porina said:

A gap I find with Google's Pixel strategy is there isn't a medium price offering. As a random thought, could HTC target that space? Don't compete with Google, but complement them. It wont grab the headlines like a flagship would, but a good phone, with good specs, at moderate price could do well in the market. Especially if they keep up to date on cutting edge Android. Because it is HTC doing it, not Google, it wont dilute the Pixel branding either.

Google seems to want to be Apple when it comes to smartphones. They only have a premium option, and nothing more. I'm not sure if that's a good idea or not though.

[ashypanda]

this is a much better deal than google buying motorola, as at least HTC can keep their patents, and if the partnership dissolves, HTC will either get shit tons of royalties from google or a shit ton from google having to licence the patents to keep the devices updated, but still i'm glad google isn't going to gut HTC like a fish.

Also this is pretty much a sign of some excellent aluminium pixels aren't completely dead.

[Doobeedoo]

Some form of embrace, extend and extinguish knowing Google designs and how they tend to abandon stuff. 

[Nowak]

7 hours ago, Master Disaster said:

So in the future we might end up with a Google Vive

<snip>

HTC Vive is not included as a part of the deal.

[mrchow19910319]

20 hours ago, wcreek said:

So brain drain the company and then leave?

 

[mrchow19910319]

13 hours ago, LAwLz said:

So basically, Google decided that it was not worth buying HTC because the brand is essentially worthless. So instead they just hire all the talent and gets a licensing deal which means they can use whatever tech from HTC they want.

See my post above. 

Not the 1st time google did this. Motorola was the same. Get their patent, get everything google needs, and sold it to lenovo. 

 

Goodbye HTC. Kind of insane how a huge battleship can sink within a few years. I've heard things like head of department leaving during crucial time, their CEO got scammed by her schoolmates etc....