Google is betting on hardware, and HTC is committing to innovation. The two companies, while part of the same $1.1 billion deal, have different goals in mind. Rather than leaning on partners every year to create new hardware, Google wants to do the work itself. HTC, however, wishes to reduce its workload and focus on a smaller number of products. It made sense for HTC to send key employees and access to intellectual property over to Google in exchange for a massive amount of money.

Now we’re hearing what motivated the deal and what the future holds.


The 10-year relationship between Google and HTC certainly helped:

“HTC has been a longtime partner of Google and has created some of the most beautiful, premium devices on the market.”

While Google is excited about what’s being announced on October 4, the future is what we should all be looking forward to:

“We’re excited about the 2017 lineup, but even more inspired by what’s in store over the next five, 10, even 20 years. Creating beautiful products that people rely on every single day is a journey, and we’re investing for the long run.”

Google knows that we all are aware of HTC’s participation in the Pixel 2:

“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.”

Merging hardware and software development, like Apple’s been doing for years, is a mission Google is intently set on:

“It’s still the 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 software.”


HTC isn’t going anywhere, but it’ll make fewer phones than before:

“This agreement also supports HTC’s continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility.”

A flagship for 2018 is already in development:

“HTC will continue to have best-in-class engineering talent, which is currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year.”

Vive, HTC’s virtual reality business, will still receive funding:

“HTC will also continue to build the virtual reality ecosystem to grow its Vive business, while investing in other next-generation technologies, including the Internet of Things, augmented reality and artificial intelligence.”

Despite its financial problems in recent years, HTC is optimistic for what lies ahead:

“We believe HTC is well positioned to maintain our rich legacy of innovation and realize the potential of a new generation of connected products and services.