Rumors are rife about HTC selling their mobile division to Google, but both companies have remained silent over the issue.
There are several reasons why users think that a sale is in the pipeline, and users have raised a furor over the issue.
Is there any indication that HTC may be up for sale to the search engine giant? Maybe so, and here are the reasons why:
HTC Manufactures hardware for Google Pixel
Google has insisted that all software and hardware for the Pixel Smartphones are manufactured by Google. The #MadeByGoogle drums up this fact. However, there is sufficient evidence showing that the Google Pixel hardware is manufactured by HTC in Taiwan.
In the past, Google tried to make its own hardware when it bought Motorola and launched the Nexus One. But after three years, the company felt it was not fit to make hardware and sold Motorola to Lenovo, keeping the patent rights.
Users are up in arms proclaiming that should Google buy HTC, there is a high probability that it will sell it off after a few years. The experience with the Motorola debacle is still fresh in the minds of Motorolausers, and HTC fans do not want this to happen to them too.
The Motorola Debacle
In order to understand why users do not favor Google buying up HTC, you should understand more about the failed Motorolaexperiment conducted by Google.
Smartphone users remember that Motorola played a pivotal role in the development of mobile technology. Their 2-way radios were renowned all over the world, and their mobile handsets were equally popular in the early years of mobile telephony.
When Google became the go-to search engine for Internet users, Motorola was plummeting at a fast pace, after Apple made the first iPhone in 2007.Google bought Motorola and made a glowing press statement about the reason why it chose Motorola Mobility for acquisition.
Motorola was one of the companies that funded the Open Handset Alliance and had also committeditself to using the Android OS on all their smartphones. This, among many other reasons was why Google bought Motorola.
Google ended up selling Motorola for a $10 billion loss. Industry players believe that the acquisition was primarily driven by the need to own Motorola patents, and not to truly build their in-house handsets. The Huge Nexus 6 was the only smartphone that Google and Motorola built together. Google was not impressed with the manufacture of the Nexus 6 and that is probably the reason why it sold off Motorola Mobility to Lenovo.
What are the implications for HTC?
The huge demand for pure Android smartphones makes the scalability of partnerships difficult. It is therefore in question whether the partnership of HTC and Google in the manufacture of GooglePixel handsets will be scalable, leading to speculation that Google may opt to buy HTC and make the devicesin-house.
Google may possibility want to cement its position as a formidable hardware and software developer, and not just the software bit. Samsung is already moving away from the Android system with their heavily modified, Android-based TouchWiz operating system and makes its own handsets. Apple also manufacturers its own hardware as well as the iOS system. So it would make sense that Google would prefer to make its own hardware as well as the Android OS.
HTC is going through financial problems and a buyout by Google would save the firm and its employees. This would be a win-win solution for both companies.
What do users have to say?
Users who buy smartphones that have been manufactured by HTC on behalf of other companies, and those who love HTC models feel that this would affect the usability of their existing devices, through discontinuation of support services.
They also feel that Google may go the same way it did with Motorola Mobility, and the whole buyout would be a charade.
The smartphone industry is very fluid in nature; partnerships are built and brought down after short periods. A buyout of HTC by Google would not inspire much confidence in the future of handsets that they manufacture. Users fear another Google-Motorola Nexus 6 saga and subsequent sale of HTC to another bidder.