Google completed HTC's acquisition of smaho development team, pursuing Apple Promoting vertical integration model

We announced that Google has completed a partial acquisition of HTC's smartphone development department. By having a team developing the Google smartphone "Pixel" series in hand, it is expected to further accelerate towards the construction of a "vertical integration model" that all the development of software and hardware is carried out by the same company as Apple.

Welcoming new teammates from HTC to our hardware organization
https://www.blog.google/topics/hardware/welcoming-new-teammates-from-htc/

Google Bets a Billion Dollars More Brains Can Help Take On Apple - Bloomberg
https://www.bloomberg.com/news/articles/2018-01-30/google-is-designing-more-in-house-phone-chips-to-take-on-apple

Google announced in September 2017 that it has reached an agreement with HTC by acquiring part of HTC's smartphone development division. This "part" is a team developing Google's own smartphone "Pixel" series. Google had entrusted the manufacture of the Pixel series of its own smartphone to HTC, but by acquiring the Pixel development team as it is, it has become possible to complete development on our own.

Google acquired HTC's hardware division, hardened hardware enhancements such as smartphone - GIGAZINE


On January 30, 2018, Google officially announced that this acquisition was completed. Approximately 2000 HTC technicians will be transferred to Google and the development base will be in Taiwan.

About Google's formal acceptance of the Pixel team to Google, Rick Rosterov, senior vice president of Google's hardware division says, "Google's hardware business will be in its third year, but we will continue to build a long-term organization We will continue to invest and continue realizing the mission of creating innovative experiences useful to people all over the world by integrating Google's AI technology, software and hardware in the best possible manner with a new team mate In order to proceed, I will start moving forward. "

In response to Bloomberg's interview, Mr. Rosterov said, "In order to exceed the limits for customers, vertical integration is necessary in some cases," said Mr. Rostelloff. All of the processes from hardware design and development to production We are clarifying plans to continue investing to build a vertically integrated model to be completed in the long term.

There is no doubt that Apple is the most successful vertical integration model for smartphones and others. Apple has developed its own SoC for Apple products such as iPhone / iPad, and it is reported that it is a policy to switch semiconductors for PC products such as Mac in the future to our own.

While Apple steadily increases chip development capabilities, Intel may lose major customers - GIGAZINE


Google, which has been entering software and cloud services based on the advertising business of the main business until now, by acquiring HTC's Pixel team, by acquiring smartphone design and manufacturing know-how which should also be the leading role of hardware products, It is expected that we will develop business to build vertically integrated model for all ware products. It is not hard to imagine that Google also considers Google's development of dedicated chips such as SoC made by our company like Apple in that process.

Nonetheless, unlike Apple, which provides iOS ecosystem hardware only on its own, Google has grown the mobile sector by coexisting with other companies such as Samsung and Huawei on the Android ecosystem, a fundamental difference There is also. The fact that Google manufactures and sells the Pixel series on its own is certain to be a threat to manufacturers that offer other Android handsets. The unit sales of Pixel smartphones, which was one million units in 2016, increased to 1.50 million units in 2017. Moreover, since the Pixel series is a product against Apple's iPhone and it is the most profitable premium model, other manufacturers' alarm against the Pixel series seems to be higher than imagined.


Mr. Rosterov asked Bloomberg "There is obviously a fascinating smartphone market in China, it is certainly interested in returning to China in the future, provided, however, that even for too complex issues for Google There is no concrete plan or discussion, "he said, leaving the possibility of entering the Pixel in the Chinese market.

The future of Android with 80% share in the smartphone market seems to be greatly influenced by the trend of Google that accelerates vertical integration model.