The Internet giant Google announced a collaboration agreement on hardware and a $ 1.1 billion investment in Taiwanese manufacturer HTC.
“We are excited about our 2017 lineup, but more for what we will have in stores in the next 5, 10 and 20 years. That is why we signed the agreement with HTC, a leader in consumer devices, that will have more innovation in years, “said Rick Osterloh, senior vice president of HTC product in a blog post on the technology.
As part of the transaction, the Taiwanese manufacturer said the agreement comprises $ 1.1 billion in cash from Google and a non-exclusive intellectual property license from HTC.
This new agreement reinforces the collaboration of a decade between both companies.
For Google to sign this agreement represents guarantee your commercial bet on hardware manufacturing.
At the end of last year, Google introduced its homemade smartphones Pixel and other devices like Google Home, Google Wifi, Daydream View and Chromecast Ultra.
“For Google, this agreement further strengthens its commitment to smartphones and the global investment of its emerging hardware business,” said the Asian firm in its statement.
Google seeks to extend its lines of business in various industries while its main sales drive, which is advertising, slows in its growth before the maturity of the business.
“This agreement is a next bright step in our long-standing partnership, allowing Google to increase its hardware business, while ensuring continued innovation within our HTC and Vive virtual reality business,” mentioned Cher Wang, CEO of HTC.