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This would be interesting. Currently Google makes a loss on Android development and licensing. They make this money back by using Android as a marketing/adverti

This would be interesting. Currently Google makes a loss on Android development and licensing. They make this money back by using Android as a marketing/advertising vehicle for their other products. If they were making significant money through selling phones directly that could change the dynamic.

elefanten 9y ago
But the whole point is that HTC hasn't been able to do that in years. It's not immediately clear why Google would be better positioned to do so with these assets
- ajross 9y ago
  HTC is the device manufacturer for the Google-designed Pixel phones. The easiest way to look at this is just a straightforward vertical integration. I don't see that there needs to be much strategy involved beyond "we think Pixel is going to sell well and want to make more money on it".
- riku_iki 9y ago
  Google has much stronger brand and marketing and will have vertical integration: new phone can have exclusive features like assistant, Google home, chromecast, Google VR integration etc. Another question is Google didn't succeed with Motorola, what will be different with HTC now? Experience?
  - amiga-workbench 9y ago
    The Motorola situation was baffling, the first generation Moto X, G and E handsets were non-nexus phones finally done bloody right, and as far as I know they flew off the shelves (especially the Moto G) I know the margins were pretty thin but I don't know how they could consider that anything but a success.
- dragonwriter 9y ago
  HTC makes the Pixel; cutting out he middleman gives Google reduced overhead (if nothing else, on contract management) and more control with that; if HTC isn't making money on the overall smartphone business to start with, the price may be attractive enough that Google wins on that advantage alone.
bryanlarsen 9y ago
Google made $31 billion in revenue from Android, according to court filings in the Oracle case. Base Android (AOSP) is free, but Google Play Services costs real money. Add in advertising & their cut of app sales, and Android is a huge profit center.
- new299 9y ago
  From my brief reading around that 31B USD number: "makes money for Google in two ways: adverts supplied by Google shown on Android phones, and revenue Google takes from its mobile app store, Google Play." [1] So, for sure, they're making money from/via Android. But not from Android itself, or from many of the Google apps directly. [1] http://www.mercurynews.com/2016/01/21/googles-android-generates-31-billion-revenue-oracle-says/ http://www.mercurynews.com/2016/01/21/googles-android-genera...
  - bryanlarsen 9y ago
    I'm sure it's quite easy for journalists and others to mix up revenue from "Google Play Services" (aka the non-open source parts of Android) and "Google Play" (the app store), even though they are very different. The rumours I've heard is that Google charges about $10/phone.
deleted 9y ago
[deleted]
reactiveinertia 9y ago
Their current CEO is not very stellar at all and is displaying characteristics of Apple envy. Maybe they imagine themselves as the better Jobs.

elefanten 9y ago

But the whole point is that HTC hasn't been able to do that in years. It's not immediately clear why Google would be better positioned to do so with these assets

ajross 9y ago
HTC is the device manufacturer for the Google-designed Pixel phones. The easiest way to look at this is just a straightforward vertical integration. I don't see that there needs to be much strategy involved beyond "we think Pixel is going to sell well and want to make more money on it".
riku_iki 9y ago
Google has much stronger brand and marketing and will have vertical integration: new phone can have exclusive features like assistant, Google home, chromecast, Google VR integration etc. Another question is Google didn't succeed with Motorola, what will be different with HTC now? Experience?
- amiga-workbench 9y ago
  The Motorola situation was baffling, the first generation Moto X, G and E handsets were non-nexus phones finally done bloody right, and as far as I know they flew off the shelves (especially the Moto G) I know the margins were pretty thin but I don't know how they could consider that anything but a success.
dragonwriter 9y ago
HTC makes the Pixel; cutting out he middleman gives Google reduced overhead (if nothing else, on contract management) and more control with that; if HTC isn't making money on the overall smartphone business to start with, the price may be attractive enough that Google wins on that advantage alone.

bryanlarsen 9y ago

Google made $31 billion in revenue from Android, according to court filings in the Oracle case. Base Android (AOSP) is free, but Google Play Services costs real money. Add in advertising & their cut of app sales, and Android is a huge profit center.

new299 9y ago
From my brief reading around that 31B USD number: "makes money for Google in two ways: adverts supplied by Google shown on Android phones, and revenue Google takes from its mobile app store, Google Play." [1] So, for sure, they're making money from/via Android. But not from Android itself, or from many of the Google apps directly. [1] http://www.mercurynews.com/2016/01/21/googles-android-generates-31-billion-revenue-oracle-says/ http://www.mercurynews.com/2016/01/21/googles-android-genera...
- bryanlarsen 9y ago
  I'm sure it's quite easy for journalists and others to mix up revenue from "Google Play Services" (aka the non-open source parts of Android) and "Google Play" (the app store), even though they are very different. The rumours I've heard is that Google charges about $10/phone.

deleted 9y ago

[deleted]

reactiveinertia 9y ago

Their current CEO is not very stellar at all and is displaying characteristics of Apple envy. Maybe they imagine themselves as the better Jobs.