In recent years the smartphone industry has been dominated by companies such as; Samsung, Apple, LG, and HTC. However, Google looks to be taking another big leap into producing more Smartphones, a year after releasing their first set of Google Pixel smartphones, after their $1.1 Billion investment into Smartphone company HTC.
With this investment, Google has made an agreement with HTC to acquire a team to work exclusively on Google’s hardware, and a non-exclusive license for HTC intellectual property. The team that Google acquired from HTC have some familiarity with Google, after working with them last year in order to produce the first smartphone from Google, the Pixel. With this investment, Google is surely capable of being able to produce better mobile products and even surpassing their competition at Apple, and their line of iPhones.
One of the problems I have with this investment, is how it will affect Google’s relationship with other companies such as; Samsung, LG, and Sony, who all rely on Google’s Android Operating System when designing their smartphones. News of this acquisition could create tension between Google, and other independent companies that utilize Android Software. For example, Samsung, which creates a wide majority of the devices that use Android OS, could partner with other companies to create a new operating system, or they could follow a similar path as Google and Apple and design their own operating system. Furthermore, Google’s investment into HTC could send mixed messages to other companies that utilize Android OS, and could lead to these companies trying to become more independent and distance themselves from Google.
Overall, I believe that although Google’s investment into HTC may hinder their relationships with companies that currently use the Android OS, this investment will help progress the company into becoming a leader in the market of technology hardware, as well as Google progressing past the mantra as the company that makes the most utilized smartphone operating system.
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References
http://www.androidauthority.com/what-google-buying-htc-means-for-the-mobile-industry-802120/
https://www.blog.google/topics/hardware/google-signs-agreement-htc-continuing-our-big-bet-hardware/