Google is about to buy HTC’s Pixel Phone for $1.1billion dollars US as Alphabet (the parent company of Google) continues to investigate options in the manufacturing scene.
Under the deal, Google will also receive a non-exclusive license for HTC’s intellectual property.
HTC will continue to run its remaining smartphone business.
The Taiwan based company HTC have seen its share of market dwindle as of late with other manufacturers taking over market share, even threatening Apple’s hold.
So for Google to enter the manufacturing market speculation as to whether this is a good idea has people polarised.
“HTC is past its prime in terms of being a leading hardware design house, mainly because of how much it has had to scale back over the years as because of declining revenues,” said Ryan Reith to Reuters, an analyst at research firm IDC.
“Unless Google really wants to control hardware for its other businesses like Home and Chromebooks in addition to smartphones, then I don’t see this as being a bet that pays off.”