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Google Is Apparently Ready To Buy Smartphone Maker HTC (cnbc.com)

According to a Taiwanese news outlet called Commercial Times, Google is in the final stages of acquiring all or part of smartphone maker HTC. CNBC reports: The report seems fishy, since Google has already been down this road, but there's a reason why Google might be interested in HTC. The Taiwanese company builds the Google Pixel, which means it could be a good fit for Google as it continues to cater to consumers with its "Pixel" smartphone brand. Here's where it sounds off base: Google acquired Motorola Mobility and then sold it off just a couple of years later. Why repeat that move? Commercial Times said HTC's poor financial position and Google's desire to "perfect [the] integration of software, content, hardware, network, cloud, [and] AI," is the driving force behind Google's interest. The news outlet said Google may make a "strategic investment" or "buy HTC's smartphone R&D team" which suggests that the VR team would exist as its own.

8 of 102 comments (clear)

  1. Ready for a true Hardware/Software commitment by Gr8Apes · · Score: 5, Interesting

    Google acquired Motorola Mobility and then sold it off just a couple of years later. Why repeat that move?

    First, Motorola was a patent play. Google gained much protection by buying the patent portfolio.

    Second, Google's tried the 3rd party vendor route and gotten shit products out of it and continues watching Apple reap 95% of the mobile profit. Pixel was an attempt by Google to create a realistic competitor that would actually help them. Now that the Pixel appears realistic, Google needs more control to keep up with Apple who is ahead in many areas. (Hint, there's a reason besides fanboism that Apple has 95% of the profits)

    Google buying HTC outright will have another immediate effect - Samsung's profits. Unless Samsung takes a page out of the same book and creates their own OS dev team and branches Android into their own offering.

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    1. Re:Ready for a true Hardware/Software commitment by Junta · · Score: 2

      (Hint, there's a reason besides fanboism that Apple has 95% of the profits)

      Well, the exaggeration aside, not *really*. As a hardware platform, the iPhone is not particularly far ahead (or far behind) than the solid Android handsets. One *could* make the argument that people like iOS software, but that's more subjective than objective featureset. And contrary to Apple touting benefits of owning the whole stack in terms of what's possible, it's generally hollow talk without substance. It can be argued that in key areas it's a simpler ecosystem and therefore they don't have to present as many choices, which may lead to less intimidating settings dialogs and such, but owning a hardware designer isn't going to help on that front unless they simultaneously ditched support for Samsung, LG, Motorola, Huawei, et al.

      Google buying HTC outright will have another immediate effect - Samsung's profits. Unless Samsung takes a page out of the same book and creates their own OS dev team and branches Android into their own offering.

      I don't understand this. Google owning Motorola didn't change the landscape significantly, and here I also don't see this changing, unless Google went insane and decided to shut out all the partners, extremely risking their majority market share for the sake of *maybe* somewhat better margins??

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  2. Re:What's the reason? by Daemonik · · Score: 3, Insightful

    There IS a reason besides fanboyism that Apple has 95% of the profits, and it's tightly integrated software and hardware solutions that do what they're supposed to, all day every day.

    No, the reason is a 30% cut of every sale from the marketplace and doing their utmost best at preventing purchases through anything but the marketplace. It's called a walled garden. Apple could give away it's phones and barely dent its profits.

    Also those "gimmicky" Android "toys" as you call them? They're introducing the features the next gen iPhone will sell you at a 300% markup and make you feel like you're an innovator for it.

    Try being a little less of an Apple fanboy. They make a decent product, at a massive markup, and do their best to keep you locked into it. They have their downsides too, like changing adapter ports for no discernible reason other than getting to sell you all new accessories every few generations, complete lack of repairability, no SD cards, that smug sense of false superiority that makes it's users so so punchable because they fall for marketing bull.

  3. They should merge the VR team with the Glass team by pecosdave · · Score: 3, Interesting

    Having played with Google Glass I have to say it's pretty cool in many respects, there's certainly some first and some potential - but it's not much. By the time you're done with the new it's a creeper cam with head-mounted caller ID and an awkward Bluetooth headset.

    HTC's V.R. team has a great head-mounted video game display that's not useful for all the time / daily wear.

    Put these two together and see if you can make something genuinely useful in a real-world environment without making the wearers look like glass-holes.

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  4. Re: What's the reason? by Desler · · Score: 2

    Apple has sold more than 100 million of iPhones a year since 2012. That would hardly qualify as a "niche" customer base.

  5. Re:Interesting if actually true... by Junta · · Score: 2

    Probably not that interesting, Google took motorola, made them take out microsd cards, then sold them and they started putting sd card slots back in. Other than that google seemed to do jack to help or hurt motorola.

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  6. Re:Can we just get an affordable, usable phone?! by rickb928 · · Score: 2

    If you do not, already, know that your perfect phone exists, and where to buy it, then having Google make one will not fix your inability to scan the market and find it now.

    But, to pick a few nits:

    - Reasonable size; 5 inches, or 5.5? That's a fairly big stretch. Be specific, or bigger will be better.

    - Six years of OS updates is not merely pointless (the OS will grow beyond your phone's capacity in 3 years) but specious. Your battery will not last six years.

    - Oh, and a replaceable battery, making the sis year OS update promise feasible.

    - Oh, and 3GB RAM MINIMUM, to make your six year OS updates feasible. 4GB really.

    - After four years there will only be, at best, three-year-old batteries on the shelf to be purchased. You want one of these?

    - If you are serious about GUI and video capabilities, those phones exist right now. Be prepared to buy one from the same site that sells incontinence supplies, but you don't care, you just want the phone.

    A Vivo 5 or 5R seems close to what you wanted, sans replaceable battery. Or a Blade V8 Pro. I can do this all morning, your phone exists, just not with the Google logo on it. Or suck it up and go for an iPhone SE, reasonable screen size and a screwdriver almost changes the battery by itself, and the iOS universe isn't quite as bleak as it used to be, since rooting your V8 Pro isn't nearly as much fun as it could be, but then you probably don;t need Android Pay or any enterprise apps, so feh, root on bro.

    Full disclosure, I've owned An Oki 123 bag phone, NEC 820, Nokia 5165 (fabulous), Siemens S46 (Satan's personal phone, Sony T637 (way ahead of its time), BlackBerry 7105t, HTC G1, Sensation 4G, M7, M8, Blu R1HD (underrated stopgap phone), and now a U11.

    I'm waiting for the foldup phone, not a flip but an actual folding screen. And GB LTE, proximity charging, and wireless cast capability. Walk into the house and my fantasy phone would ask if I want to cast to the nearest screen, charge within a few feet of a proximity charger, and pair up the keyboard/mouse on the countertop, shared with other phones just by me entering my PIN and it's mine for now. Wireless LTE being faster than my ISP, I don't have one. Netflix, etc is my entertainment provider, OTA HD is cast back to my phone and is *the only reason* I have a home ISP, this TV has Tivo/Sling functionality built in, along with PVR and casts to my phone. Apps for work live within this. Voice integration is completed. I can dream.

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  7. Re:Why? Patents. by hanwen · · Score: 3, Informative

    Motorola had significant cash and tax offsets, making the effective price about $ 3bn.

    see https://www.quora.com/Why-did-Google-buy-Motorola-for-12-5-billion-and-sell-it-off-for-2-91-billion :

    "And what of Google’s supposed $10bn loss? It’s a misreported myth calculated by subtracting Motorola’s $2.91bn sale price from its $12.5bn purchase. What it misses are the $3.2bn Motorola had in cash, $2.4bn saved in deferred tax assets and two separate Motorola unit sales totalling $2.5bn in 2013. Factor in Lenovo’s purchase against roughly $2bn of Motorola losses during Google’s ownership and Google has still only paid $3bn for what it retained: $5.5bn worth of Motorola patents and the company’s cutting edge research lab."

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    Han-Wen Nienhuys -- LilyPond