20 September 2017
HTC released its financial report for the month of August yesterday a month after the company’s second quarter billings reported the continuing loss streak. The Taiwanese smartphone manufacturer has been in the Android business for a long time now, ever since the first wave of Android hit the market. While the company has managed to sell high-end devices earlier in the decade, it is yet to make an impact in the modern market which demands so much more within a less period of time.
While the company saw an increase in revenue from a monthly $4 billion a month to $6.8 billion and $6.1 billion in the months of June and July, we can estimate that it largely due to the fact that HTC introduced their HTC U11 device on the market. The latest report suggests that revenues for the month of August have fallen even lower than estimated and stand at $3 billion which is the lowest it has been in the last 13 years. What this means is, HTC’s revenues have fallen down to 50% of the value in the span of one year, keeping in mind it has only been a couple months since they released their flagship device.
This has led to news that Google might be nearing a deal that might result in HTC’s smartphone division being acquired by the search giant. According to sources, both companies are in the final stages of negotiation which would make sure HTC’s smartphones don’t suffer a sudden demise, while Google might still look to acquire all of HTC’s branding and smartphone business. Google’s acquisition could also mean HTC’s smartphones could have a new strategic partner.
If the deal goes as we expect it to be, we might be looking at the second time Google has stepped in for help after it came to Motorola’s rescue six years ago. Keeping in mind that both companies have had a smooth history in the past which even led to HTC team up with Google to release the latter’s first generation of Pixel phones, we can only expect it to soothe in. The Taiwanese giant is also rumored to have a hand on the next generation of Google’s Pixel devices which could only mean that Google would want HTC to remain in function.
Needless to say, even if Google might not step in, considering HTC’s revenue schemes, they’re bound to be acquired by someone else in the near future.