Thursday, March 28

HTC to acquire an Operating System?

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HTC are interested in acquiring an operating system, if media reports are to be believed.  The potential acquisition has raised some eyebrows as it has been a tad unexpected.  I believe very strongly that motivation for this acquisition is in response to Google’s purchase of Motorola Mobility.

HTC was arguably the biggest loser in the Motorola Mobility acquisition as they were seen to have a very good relationship with Google through using their Android operating system.  Another point to consider is that HTC and Google partnered for the initial version of the “Google phone”.  The Google Nexus One was at the time of its launch, the best smart phone showcasing the Android operating software. We all know that Google later quietly shelved the product as it battled to deal with customer service.

Google also provided patents for HTC to utilize when they sued Apple for patent violations. HTC made an interesting investment when they “partnered” with Monster Beats, the headphone specialist.

According to Jimmy Lovine, co-founder of Beats; ” the HTC and Beats by Dr. Dre partnership is an opportunity for two world-class companies to redefine the smart phone industry and define the future.” HTC’s CEO Peter Chou was similarly enthused; “Beats is a unique sound experience that is much more than headphones. The Beats team knows what music quality is and we are very excited to be partnering with them.” Despite HTC’s investment, Beats will continue to operate autonomously.

Everyone thought that HTC would look at adding a critical element to their stable, (i.e. A mobile UI start-up) but did not even remotely consider that they would make a “strategic investment” into a headphone manufacturer.

The question now becomes, will HTC consider the jugular and take a huge chance and bid for HP’s  WebOS? It would make sense as HTC does manufacture tablets (such as the HTC Flyer) and a variety of smart phones.

It’s pretty clear that there is a lot going on behind the scenes and in the boardrooms of cellphone manufacturers as everyone is battling for a position.  The thought for an operating system acquisition makes sense but will HTC make a bid for WebOS?

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