HTC To Release New Flagship Phone Post Google Deal
Today’s news has disclosed HTC is re-allocating a substantial portion of its smartphone team to Google for $1.1 billion, however, new reports reveal that HTC will persist as a premium smartphone maker into 2018, with the release of new flagship phone.
Whilst the exact details of HTC & Google’s deal have not been divulged, recent reports affirm that the company’s own smartphone business will continue on, with at lease one more flagship device.
HTC’s press release states of the Google deal and its future smartphone business:
“This agreement also supports HTC’s continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility. HTC will continue to have best-in-class engineering talent, which is currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year.”
The ‘streamlined portfolio’ can be inferred to mean that HTC will remove all but it’s most profitable, successfully and likely to be flagship models – e.g. it’s U11 smartphone. By ridding itself of several staff salaries, and by receiving a $1.1b injection from Google, the company is set to receive a good amount of breathing room.
Some commentators believe that HTC’s refusal to shut down its smartphone operations entirely would be too costly an endeavour, considering the amount of inventory it already has with various carriers and retail stores.
Google’s announcement is said to not close until early next year – the time when the new HTC flagship phone is expected for release – therefore it’s likely HTC would not want to eradicate a device it already had in the works.
Regardless, the fact HTC is releasing a 2018 smartphone could hint it plans to do more than just retain a bare number of staff to keep its smartphone operations afloat.
Other spectators argue HTC’s phone business can’t compete with Samsung, LG and the to-be-improved Google, and that the most logical step for the company is to focus on its Vive VR platform.