Google Purchases HTC's Pixel Division for $1.1 Billion

[ghost187]

ftfy Considering both sides reached a detente shortly after firing patent volleys at each other, I'd say it worked.

https://www.slashgear.com/google-gets-18-key-patents-from-12-5-billion-motorola-deal-22173400/

Ok I was off by 11 patents. But it definitely wasn't 7,500 key patents.

 

[Rogifan]

The spin on this by the tech media cracks me up. The Verge says Google is becoming Apple faster than Apple is becoming Google. How stupid. Wake me up when Google is selling 40-50M smartphones in a quarter that contain Google designed SoC. Also when did Apple ever say it wanted to become Google? Every technology company is investing in ML/AR/AI. That has nothing to do with trying to become Google. The majority of Google’s revenue comes from advertising. The only company really competing with them in the ad space is Facebook.

https://www.theverge.com/2017/9/21/16343342/google-htc-deal-apple-iphone-war

 

[oneMadRssn]

And why does Google need this? We know why Microsoft bought Nokia but they soon realized the market wasn’t interested in a 3rd mobile OS and shifted priorities elsewhere. There is no similar situation with Android. Android is on more phones than ever. Premium Google hardware is always going to be niche.

Google has the money, so why not try to expand their business. I think they are realizing they are bumping up against a wall which none of their OEM partners can get around. They want vertical integration, like Apple has. I bet they want it to be a true competitor, and not a niche.

It will be interesting to see what Samsung and LG do if Google does truly begin to compete with them on a large scale with hardware. Samsung has Tizen and LG has WebOS. Neither are mature smartphone platforms of course, but they might not be willing to keep sharing profits with Google while Google is competing with them on their hardware turf.

 

[69Mustang]

https://www.slashgear.com/google-gets-18-key-patents-from-12-5-billion-motorola-deal-22173400/

Ok I was off by 11 patents. But it definitely wasn't 7,500 key patents.

I think I see the disconnect between what you and I are discussing. From your source:
"Hence, Google’s $12.5 billion bid for Motorola Mobility is seen as a defensive maneuver to secure the phone maker’s 17,000 patents and an additional 7,500 patents pending. (my assertion) But of that massive portfolio, only about 18 will be key to Google defending the Android platform, according to patent lawyer David Mixon...(your assertion)"
You were referencing the David Mixon's opinion that 18 of 17,000 patents would be key. I was referencing the purchase involved 17K patents and 7.5K patent applications. Apologies for the confusion.

 

[kdarling]

A few notes:

- Google is not buying any manufacturing capability here.

- They're buying the part of HTC which was already concentrating on Google hardware. Basically it's opening a Taiwan R&D section with about 2,000 employees who are already familiar with Google's desires.

- The new Google group will still have access to HTC patents via a license.

- This leaves the rest of HTC able to concentrate on their own devices.

It's as if say, Apple were to buy the section of Intel that was designing modems and other chips for them, plus got an IP license. It leaves the parent company intact, but grabs the specific talent they need.

 

[Rogifan]

Google has the money, so why not try to expand their business. I think they are realizing they are bumping up against a wall which none of their OEM partners can get around. They want vertical integration, like Apple has. I bet they want it to be a true competitor, and not a niche.

It will be interesting to see what Samsung and LG do if Google does truly begin to compete with them on a large scale with hardware. Samsung has Tizen and LG has WebOS. Neither are mature smartphone platforms of course, but they might not be willing to keep sharing profits with Google while Google is competing with them on their hardware turf.

Why though? Why does Google need to be vertical? As far as Samsung and LG leaving Android....never going to happen. Developers aren’t going to develop for all these different platforms and without developers a platform is dead. See: Microsoft and Windows Phone.

 

[oneMadRssn]

Why though? Why does Google need to be vertical? As far as Samsung and LG leaving Android....never going to happen. Developers aren’t going to develop for all these different platforms and without developers a platform is dead. See: Microsoft and Windows Phone.

Why do they need to be vertical? So they can have the same control as Apple has.

Look how Apple just willed ARKit into existence. This can only be done so quickly and easily if you control both the hardware and the software. Google can huff and puff about Samsung and LG putting in the exact hardware Google wants, but they can't force it, and often Samsung and LG refuse. Or they layer skins on top of Android to hide or demphasize Google's features for their own.

Samsung and LG aren't going to leave Android, but they are trying to undercut Google's control. Samsung is heavily pushing their own voice assistant, for example. LG is pushing their own video format. Both are refusing to adopt Android on their TV offerings. None of them are exactly quick at releasing Android updates too.

Microsoft and Windows Phone failed for different reasons. They launched a half-baked OS, they screwed over users by not making updates backwards compatible, and they totally failed to market it correctly. On top of that, the hardware was so so. Microsoft's issue was lack of focus.

Despite everything wrong with the Pixel, people still were very excited to get it and waited a long time for pre-orders. It's no Windows phone.

It's clear Google wants to control everything - even more than Apple already does. They have ProjectFi as a MVNO, they have the Pixel phones as their in-house hardware, and they have the OS - Android. With this, they will control manufacturing too. They will be the only company that in effect controls every single aspect of a smartphone. Software, hardware, manufacturing, and carrier. With these things aligned, they should be able to accomplish some pretty cool stuff.

... I'm going to keep my iPhone for now though

 

[kdarling]

Meh. I think this too shall pass.

It smacks of a new executive wanting to make a big difference. When he leaves in a few years, the next executive could have a totally different focus.

I wonder how much of the billion dollar price is for the technology license. It seems too much to pay for a bunch of engineers, even if they are experienced in their products. Although some analysts see the cash as being a way to support HTC through hard times, as well.

OTOH, it's likely far more useful than the way Apple spends billions setting up "R&D Centers" in places like India and China, which seem more geared towards providing busy work employment to curry favor with the national governments.

It also seems a better deal than the $3 billion Google spent on Nest.

 

[ksnell]

Strike two in mobile hardware for Google?
[doublepost=1506018886][/doublepost]

Nice. Good news for Google phone fans and very good for android.
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They bought Motorola for their patents.

Apple does acquire companies for such IP as well. All big companies do. Don't be misinformed.

Absolutely, but Apple doesn't typically make as big of acquisitions. They are usually smaller and more strategic. The biggest (and maybe worst) obviously being Beats for $3B.

 

[Michael Scrip]

HTC hasn’t made a successful phone in a while, but it is one of the larger high tech manufacturers outside of Shenzen. No other smartphone company that I am aware of both designs and manufactures their own smartphones inhouse.

If they are so large... and have such great designers... but hardly anyone buys their phones...

I gotta ask... how good are they really?

I've heard lots of praise for HTC over the past couple days.

Yet they weren't able to convince consumers of that... not in a long time.

 

[kdarling]

I've heard lots of praise for HTC over the past couple days.

Yet they weren't able to convince consumers of that... not in a long time.

There's a difference between making excellent phones and marketing them.

Remember when HTC managed to get Robert Downey Jr to make ads for them? Yeah, no one else does either. The ads were a total waste.

In the meantime, Samsung gained huge market share for a while with its highly memorable ads poking fun at people standing in line for a competitor's phone.

 

[Michael Scrip]

There's a difference between making excellent phones and marketing them.

I know that... you know that... are you telling me that NO ONE at this huge corporation knows that?

You're right... it's two words: bad marketing. We've solved it!

My theory: HTC was making phones for other companies long ago (ODM) but they eventually started making and selling their own phones. They had a few hits and made quite a name for themselves.

But the market exploded around them. Soon there were a hundred companies selling similar devices.

Maybe HTC weren't agile enough to adapt to a changing market. And they had the previously mentioned marketing missteps.

Getting back to your point: yes... there absolutely is a difference between making great phones and marketing them. But you actually need BOTH to be successful.

HTC only had one of those... and that's why they fell from grace and became an acquisition target.

I know, I know... Google isn't buying the whole company. But I bet HTC wishes they they didn't have to be involved with any of this and could remain unencumbered as their own company.

It simply wasn't meant to be.

Looking forward... it's not a clear path to success either.

We know HTC can make great phones... and maybe Google can assist them with marketing prowess.

But good lord... the market is even bigger than when HTC started having trouble 5-6 years ago.

I'll be watching with interest since I enjoy this stuff... but I'm not expecting miracles.

 

[Michaelgtrusa]

I don't but this at all. How long before Google sell's it to someone else, and you can guess who that will be.