Only a few months in the past Google and HTC introduced a deal that will see HTC promote a giant chunk of its telephone division to Google for $1.1 billion. As we speak, Google introduced the deal has closed, and the HTC workers are formally becoming a member of Google.
For HTC, the deal is a giant money infusion at a time when the corporate is struggling financially. WIth HTC burning by way of about $75 million every quarter, Google’s cash provides it over three years of cash to burn on the present fee. The transfer must also lower prices for HTC: the two,000 workers leaving for Google signify half of HTC’s R&D group and 20 p.c of its 10,000 workers. HTC claims it should proceed to compete within the smartphone market, even with this big of a workers lower.
For Google, the deal will bolster the group, which was fashioned in 2016 beneath former Motorola CEO Rick Osterloh. The Google Pixel, Pixel XL, and Pixel 2 smartphone have been a collaboration between Google and HTC, and these 2,000 HTC workers are those that made up the Pixel crew inside HTC. Bringing the crew in-house ought to give Google extra management over the smartphone design course of, presumably bringing extra unity to the Pixel line and deeper integration of and software program.
2017’s Pixel 2 and Pixel 2 XL have been two very completely different smartphones, made by two completely different producers (HTC and LG) with completely different units of parts. Extra unity could be good. Google nonetheless does not have its personal manufacturing services, however neither does Apple. With these further engineering assets, presumably Google can now do the identical factor Apple does, getting a contract producer like Foxconn to construct an in-house design.
Osterloh says the brand new workers additionally signify a giant growth within the Asia Pacific area, and Taipei just isn’t the most important Google engineering website within the space.