Google and HTC agree a billion-dollar deal
22 September 2017
A $1.1bn deal has been struck between Google and HTC, the Taiwanese smartphone producer. Google will not own part of HTC, but some of the Taiwanese firm’s staff will work with Google to develop their hardware capabilities.
The deal is useful for HTC which is struggling to compete against Apple and Samsung. The close collaboration could result in Google bringing Android updates to market more quickly.
Hardware capacity
Alphabet, Google’s parent company, had previously purchased Motorola’s Mobility business for 12.5bn in 2011, later selling the business. This seems like a second attempt to create a stable hardware platform for Android systems, Rick Ostreloh, Google’s vice-president of hardware comments: "It's still early days for Google's hardware business," but, "These future fellow Googlers are amazing folks we've already been working with closely on the Pixel smartphone line."
The deal will see 2,000 HTC research and development staff join Google, about half the R&D team. This should lead to updated versions of the Pixel phone range.
According to Geoff Blaber of CCS insight Google have little choice but to develop their hardware capacity; "The far bigger risk for Google would be to stand by and do nothing as hardware becomes an all-important means to an end for its core business," said Mr Blaber
A $1.1bn deal has been struck between Google and HTC, the Taiwanese smartphone producer. Google will not own part of HTC, but some of the Taiwanese firm’s staff will work with Google to develop their hardware capabilities.
The deal is useful for HTC which is struggling to compete against Apple and Samsung. The close collaboration could result in Google bringing Android updates to market more quickly.
Hardware capacity
Alphabet, Google’s parent company, had previously purchased Motorola’s Mobility business for 12.5bn in 2011, later selling the business. This seems like a second attempt to create a stable hardware platform for Android systems, Rick Ostreloh, Google’s vice-president of hardware comments: "It's still early days for Google's hardware business," but, "These future fellow Googlers are amazing folks we've already been working with closely on the Pixel smartphone line."
The deal will see 2,000 HTC research and development staff join Google, about half the R&D team. This should lead to updated versions of the Pixel phone range.
According to Geoff Blaber of CCS insight Google have little choice but to develop their hardware capacity; "The far bigger risk for Google would be to stand by and do nothing as hardware becomes an all-important means to an end for its core business," said Mr Blaber
Vocabulary
Highlight text for solutions
to strike a deal - to make a deal
to own –something belongs to you
to develop – make better, bigger, cheaper, etc.
capabilities – skills and resources that let you do something
hardware – phones, computers, etc.
stable – reliable, dependable, not changing
to comment – to say
updated – new, improved
little choice – not many options
means to an end – a way of making something else happen
Highlight text for solutions
to strike a deal - to make a deal
to own –something belongs to you
to develop – make better, bigger, cheaper, etc.
capabilities – skills and resources that let you do something
hardware – phones, computers, etc.
stable – reliable, dependable, not changing
to comment – to say
updated – new, improved
little choice – not many options
means to an end – a way of making something else happen
Questions
Will Google have shares in HTC?
What problems are HTC and Google hoping to solve with this deal?
Why does Google need stable hardware for its business?
Will Google have shares in HTC?
What problems are HTC and Google hoping to solve with this deal?
Why does Google need stable hardware for its business?
Grammar
Which hardware company did Google buy before HTC? How does the grammar in the sentence place these events in order?
Alphabet, Google’s parent company, had purchased Motorola’s Mobility business for 12.5bn in 2011, later selling the business.
Highlight for solutions
Past perfect is used to place these events before the events discussed earlier in the article.
More past perfect grammar notes click here
Which hardware company did Google buy before HTC? How does the grammar in the sentence place these events in order?
Alphabet, Google’s parent company, had purchased Motorola’s Mobility business for 12.5bn in 2011, later selling the business.
Highlight for solutions
Past perfect is used to place these events before the events discussed earlier in the article.
More past perfect grammar notes click here