HTC (TPE:2498) Partners With Google (NASDAQ:GOOG) (NASDAQ:GOOGL) To Make Nexus Tablets

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By Mark Michaels on September 22, 2014 Company, Technology & Software

Ever since the lackluster sales of HTC (TPE:2498)’s Flyer tablet in 2011, the executives at HTC have refrained from producing tablets until they have a compelling reason to do otherwise. It seems that compelling reason is here. Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) recently chose to partner with HTC to produce its upcoming Nexus tablet. For the past few months, engineers at HTC have been traveling to the Googleplex in Mountain View, California to work on the project for the 9 inch device. Neither Google nor HTC released a comment on their collaboration in releasing a Nexus tablet. The partnership seems unusual, given that Google chose HTC over tablet makers with more experience, such as Samsung (OTCMKTS:SSNLF). HTC does not have a strong track record with tablets, and focuses almost solely on its smartphones. However, Google’s choice of partnering with HTC shows the software tycoons long standing mission of creating a wide base fo partners. Google prefers to change its partners for each device it makes in order to prevent any one manufacturer gaining a monopoly. According to a person familiar with the matter, this is the reason for Google mulling over HTC as a partner for the Nexus tablet since last year. The flagship One smartphones from HTC have received with positive reviews. A few of those reviews have tooted that they are the best Android smartphone both this year and last year. However, the Taiwanese company has found it challenging to keep up its sales against rivals with larger pockets and more money to spend, namely Samsung. Another reason for the Google HTC partnership could be the concern that Samsung is gaining too much power among Android smartphone makers. However, Google did sign a cross licensing patent deal with Samsung in January this year in order to hold off any possible conflict between the two firms. Google refused to comment on the reason for switching partners for its Nexus device. However, the company did say that the Android system is a vibrant ecosystem, and many players in the industry are performing very well. Thus, there is plenty of room for many partners to do well and innovate with Android. In the case of HTC, the company based in Taiwan, has been excited to obtain a foothold in new sectors of the market as it loses power in the smartphone space. The firm’s executive managers have stated that they are working on brand new areas this year, including wearable devices. In 2010, HTC made the first Nexus smartphone for Google, the Nexus One. However, it has not made a device for the product line since then. It is uncertain to measure the consumer caption for a Nexus tablet from HTC. Estimations for the sales of the HTC Nexus device has been all over the map as well. However, the company can hope to perform as well as Asus, which manufactured the Nexus 7 in 2012 and saw its profits jump by double digits on the back of those sales.