HTC is said to be in “final talks” with Google for the sale of its smartphone division to the search engine giant. The Taiwanese-based company is Google’s manufacturer of choice for the Pixel (and supposedly one of the upcoming Pixel 2), but is otherwise underperforming in the market.
The Commercial Times reports that Google is currently evaluating two separate options for HTC; either becoming a strategic partner or buying the smartphone division out right from HTC.
The HTC Vive unit is off the table however, and will not be folded into Google if any agreements are made with the ailing smartphone maker.
Even the news of this has made an impact to HTC’s shares as it dropped in value by 8 percent in a single day. According to HTC, revenue in August declined by 51.1 percent from July, and a staggering 54.4 percent year-on-year decline in the same month. This is the lowest monthly revenue figure for the company in 13 years.
If Google were to pick up HTC, this would be a strategic move for the company in the current market situation. However, we all remember what happened the last time Google bought a smartphone company.
The market will wait and see the outcome of this discussion, and if it will benefit Google, HTC and more importantly – the consumers.