Turbotodd

Ruminations on IT, the digital media, and some golf thrown in for good measure.

Supercharge Me

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Google and HTC have announced a $1.1 billion cooperation agreement, one under which HTC employees will join Google and HTC will continue to work with Google on smartphones, including its Pixel line of phones released last year.

As The New York Times reported, “Bringing on the team from HTC is a sign that Google is doubling down on plans to produce its own hardware.” But the two sides did not reveal how many engineers and other key employees would move over to Google.

HTC would still be free to continue making its own smartphones under the deal, but it seems evident that Google would take on the creme de la creme of HTC design and engineering staff, but not be required to take on its manufacturing facilities.

It would be easy to forget Google has traveled down this road before, having acquired Motorola Mobility in 2011 for $12.5 billion before selling the company to Lenova in 2014 for $2.9 billion.

This is from the press release back when the Google/Motorola deal was going down:

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.
– via TechCrunch

And this is from HTC’s press release overnight: 

For Google, this agreement further reinforces its commitment to smartphones and overall investment in its emerging hardware business. In addition to the talented and experienced team of professionals, Google will continue to have access to HTC’s IP to support the Pixel smartphone family. Additionally, this agreement also represents a significant investment by Google in Taiwan as a key innovation and technology hub.
– via HTC

So one would surmise from all this that what this is really all about is supercharging smartphone hardware…and Taiwan?

If I do the math, Google spent $12.2B on Motorola Mobility, sold it for $2.9B, which resulted in a loss of $9.6B. Now, they’ve bought part of HTC for $1.1B, which means they’ve invested $10.7B in smartphone hardware over the past six years.

That amounts to their spending about $148,611,111.11 per month on smartphones since August 2011.

I think I’ll stick with my iPhone plan on Verizon.

Written by turbotodd

September 21, 2017 at 8:49 am

Posted in 2017, android, google, htc, pixel

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